If the risk of buying U.S. assets rises because it is discovered that lending institutions had not carefully evaluated borrowers prior to lending them funds, then
a. the real exchange rate and the interest rate will rise.
b. the real exchange rate will rise and the interest rate will fall.
c. the real exchange rate will fall and the interest rate will rise.
d. the real exchange rate and the interest rate will fall.
c
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The market structure that lies between competition and monopoly.
A. increasing returns to scale. B. intra-industry trade. C. inter-industry trade. D. imperfect competition.
Which of the following would increase the natural rate of unemployment?
A) an increase in the number of younger, less skilled workers in the economy B) a reduction in the generosity of unemployment insurance programs C) an increase in government-sponsored programs that train unemployed workers so they can find new jobs quickly D) restrictions on the ability of unions to negotiate wage changes with companies