The Domestic Real Interest Rate (R)for a Given Country Must

question 71

Multiple Choice

The domestic real interest rate (r) for a given country must be the same as the world real interest rate (rw) ________.

• A)if perfect capital mobility is assumed
• B)because with no barriers to capital flows,if rw > r domestic residents would just borrow abroad putting upward pressures on the domestic rate until both rates equal each other
• C)because with no barriers to capital flows,if rw < r domestic residents would only lend to foreigners putting downward pressures on the domestic rate until both rates equal each other
• D)all of the above
• E)none of the above

---

Definitions:

Amylase

Amylase is an enzyme that helps in the breakdown of starches into sugars and is found in saliva and pancreatic fluid.

Salivary Amylase

An enzyme found in saliva that begins the digestive process by breaking down starches into simpler sugars.

Oligosaccharides

Short chains of monosaccharide units bound together, found in many plants and used in various biological roles.

Emulsify Lipids

The process of breaking down fats and oils into smaller droplets, typically through the action of bile acids in the digestive system, to aid in lipid digestion and absorption.