A German mutual fund sells euros to a U.S. bank for $20,000 . The mutual fund then uses these dollars to purchase a bond issued by United Express, a U.S. delivery company. As a result of these two transactions, what happened to U.S. net capital outflow?
a. It fell by $40,000.
b. It fell by $20,000.
c. It was unchanged.
d. It rose by $20,000.
c
Economics
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Assuming the United States is the "domestic" country, if the real exchange rate between the United States and France increases from 1.5 to 1.8
A) the prices of U.S. goods and services have increased by 20% relative to France. B) the prices of U.S. goods and services have increased by 53% relative to France. C) the prices of U.S. goods and services have increased by 3% relative to France. D) the prices of U.S. goods and services have decreased by 16% relative to France.
Economics
A contractionary fiscal policy can be illustrated by a(n):
A. decrease in aggregate demand. B. increase in aggregate demand. C. change in the price level. D. increase in aggregate supply.
Economics