If the interest rate received in Mexico is greater than that obtained in the United States,
A) the demand for loans will increase in Mexico.
B) the supply of loans will decrease in the United States.
C) the supply of loans will decrease in Mexico.
D) the demand for loans will decrease in the United States.
B
You might also like to view...
Isabel can work as a rodeo clown, where the probability of being killed in a work-related accident is 5/10,000, or she can earn work as a sword swallower, where the probability of being killed in a work-related accident is 3/10,000
Using the compensating differential approach, the value of Isabel's life is $5 million. How much more per year will working as a rodeo clown pay than working as a sword swallower?
Which of the following generally occurs when a central bank pursues contractionary monetary policy?
A) the central bank purchases bonds and the interest rate increases. B) the central bank purchases bonds and the interest rate decreases. C) the central bank sells bonds and the interest rate increases. D) the central bank sells bonds and the interest rate decreases.