If a U.S. citizen deposits $10,000 in a foreign bank, and the bank uses the $10,000 to buy assets in the U.S., then ________
A) the U.S. has experienced a net capital outflow
B) the U.S. has experienced an increase in net exports
C) the foreign economy has experienced a net capital outflow
D) the foreign economy has experienced an increase in net exports
E) none of the above
E
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In the long run in the Keynesian model, a beneficial supply shock would leave the economy with a higher level of output, but also a ________ real interest rate and a ________ price level
A) higher; lower B) lower; higher C) lower; lower D) higher; higher
On the graph above, suppose point G is on the short-run aggregate supply curve ? = 2.5 + 2 × (Y - 22 ) and aggregate demand curve Y = 29.25 - 0.5?
If output at point G is 25, and inflation expectations are adaptive, then the inflation rate next period will be ________. A) 11.5 B) 14.5 C) 8.5 D) 2.5 E) none of the above