Which of the following is true?
a. When real interest rates are higher in country A than country B there will tend to be a capital flow from country B to country A.
b. When real interest rates are higher in country A than country B there will tend to be a capital flow from country A to country B.
c. Capital flows will tend to increase real interest rates in countries with a capital inflow

Mary takes 4 minutes to make a sandwich and 6 minutes to mix a cocktail. Her sister Ash takes 4 minutes to make a sandwich and 4 minutes to mix a cocktail. Calculate each sister's opportunity cost

Which of the two sisters has an absolute advantage in making sandwiches? In mixing cocktails? Which of the two has a comparative advantage in making sandwiches? In mixing cocktails?

Interest rate differentials can cause rapid fluctuations in short-run exchange rates

a. True b. False Indicate whether the statement is true or false