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  3. Macroeconomics Study Set 48
  4. Quiz 18: International Macroeconomics

When Interest Rates Are Higher in Country a Than in Other

Question 79
Multiple Choice

When interest rates are higher in country A than in other countries: A) other countries will borrow more from country A. B) capital will flow into country A. C) capital will flow out of country A. D) country A will lend more to other countries.

Related questions
Q 80
In countries with rapidly growing economies, like China and India, the demand for loanable funds is _____ and interest rates are _____ than in countries with slowly growing economies. A) larger; higher B) larger; lower C) smaller; higher D) smaller; lower
Q 81
Capital tends to move from: A) less developed to more developed countries. B) poorer countries to wealthier countries. C) slow-growing countries to fast-growing countries. D) fast-growing countries to slow-growing countries.
Q 82
The underlying motives behind capital flows reflect international differences in: A) savings. B) investment opportunities. C) technology. D) both savings and investment opportunities.
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