Suppose that the local real interest rate rises relative to real interest rates in other countries. This increasewould make foreignersQuestion 22Not yetansweredSelect one:Marked out of1.00a.more willing to purchase local bonds, so capital inflow would rise.P FlagO b. more willing to purchase local bonds, so capital inflow would fall.questionc. less willing to purchase local bonds, so capital inflow would rise.O d. less willing to purchase local bonds, so capital inflow would fall.Previous pageNext pageReset user tour on this pageDEC山T四AtvMacBook Proesc....

Answer: If the local real interest rate rises relative to other countries then foreigners will be…

Question 22 Suppose that the local real interest rate rises relative to real interest rates in other countries. This increase would make foreigners Not yet answered Select one: Marked out of 1.00 a. more willing to purchase local bonds, so capital inflow would rise. P Flag question O b. more willing to purchase local bonds, so capital inflow would fall. O c. less willing to purchase local bonds, so capital inflow would rise. O d. less willing to purchase local bonds, so capital inflow would fall.

Question 22 Suppose that the local real interest rate rises relative to real interest rates in other countries. This increase would make foreigners Not yet answered Select one: Marked out of 1.00 a. more willing to purchase local bonds, so capital inflow would rise. P Flag question O b. more willing to purchase local bonds, so capital inflow would fall. O c. less willing to purchase local bonds, so capital inflow would rise. O d. less willing to purchase local bonds, so capital inflow would fall.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The diagram below show the market for financial capital assuming that national income is constant at potential GDP, Y*. Real Interest Rate FIGURE 2 NSO I* 11 12 13 NS1 1 1 ID Quantity of Investment and Saving ($) Refer to Figure 2. Suppose national saving is reflected What is the effect in the market for financial capital? NS, and investment demand is reflected by loº. Now suppose the vernment implements a policy that increases investment tax credit. Select one: O a. Investment demand shifts to 1₁P and the quantity of national saving supplied rises to 1₁. O b. National saving shifts to NS₁, investment demand shifts to 1₁D, and the quantity of national saving rises to 1₁. O c. National saving shifts to NS₁, and the quantity of national saving supplied rises to 1₂. O d. There is no effect on NS or IP and the quantity of national saving supplied remains at I*. O e. Investment demand shifts to I₁P, national saving shifts to NS₁, and the quantity of national saving rises to 13.
Which of the following will result to a surplus in the financial account? O a. Amount paid to foreigners for goods and services is more than the amount received O b. Value of assets bought from foreigners is less than the value sold to foreigners O c. Value of assets sold to foreigners is less than the value bought from foreigners O d. Amount paid to foreigners for goods and services is less than the amount received In the Philippines, the Congress takes part in the implementation of fiscal policies. a. False; only the executive branch takes part in the implementation of fiscal policies O b. False; the legislative branch has nothing to do with fiscal policies O c. True O d. False; only the Bangko Sentral ng Pilipinas takes part in the implementation of fiscal policies
D2)
Just TRUE & FALSE
Question: is taking an action that ............. your exposure to rate risk, usually to try to profit from your belief about what future .... . rates will be. O a. Speculation; reduces; exchange; exchange Ob. Hedging; increases; exchange; exchange O C Hedging; increases; interest; interest d. Speculation; increases; exchange; interest Speculation; increases; exchange; exchange
The observation that short-term capital has become increasingly mobile internationally probably implies the BP curve has O A. become steeper O B. become flatter C. become unimportant D. become downward sloping
QUESTION 8 Suppose the development of the European Union leads to a greater demand for investment in Europe. You'd expect OA, a recession in Europe. B. a decline in the world real interest rate. OC, a rise in the current account in Europe. D. an increase in the world real interest rate.
or In the Solow Model, what is depreciation? O The erosion of capital over time. O Discounting of financial capital. A diminished importance of a particular production process. O A decrease in the value of a currency relative to other currencies. In the Solow Model, what is investment? O The purchase of stocks, bonds, or other financial assets. Corporate money management. Renovation of depreciated capital or the purchase of new capital. Money not spent on consumption.
Lecture: Open Macro Question: A currency appreciation moves the BP curve to the ... because exports ... and imports . . The interest rate must .... since capital inflows are needed. ......... O a. left ; increase; decline; fall ; lower O b. left; decline; increase; rise; higher O C right; decline; increase; rise; higher O d. right; increase; decline ; fall ; lower e. right; increase; decline; rise; lower
1) If a county becomes less likely to default on its bonds, what happens to that country’s interest rate and exchange rate? Explain. 2)
Concerning a country's business cycle, rapid growth of production and employment is commonly associated with: Select one: O a. Small or shrinking trade deficits and current account deficits O b. Large or growing trade deficits and current account deficits Oc. Small or shrinking trade deficits and current account surpluses O d. Large or growing trade surpluses and current account surpluses
K Because in the government budget deficit increase the real interest rate, budget deficits can O A. decreases; increase OB. increases; increase OC. decreases; decrease O D. increases; decrease firm investment. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.