Refer to Figure 4.4. At an interest rate of 7%,
A) Foreign borrowers have an incentive to offer lenders in the United States an interest rate greater than 7%.
B) Foreign lenders have an incentive to offer borrowers in the United States an interest rate less than 7%.
C) U.S. lenders have an incentive to offer borrowers in the rest of the world an interest rate of 7%.
D) U.S. borrowers have an incentive to offer U.S. lenders an interest rate greater than 7%.
B
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When economic growth occurs, the
A) economy moves along its production possibilities frontier. B) production possibilities frontier shifts outward. C) production possibilities frontier becomes steeper. D) production possibilities frontier shifts outward but no longer limits the amount that can be produced.
During the Civil War (1861–1865), hyperinflation occurred in
(a) the North. (b) the South. (c) both the North and South. (d) neither the North nor the South.