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  3. Principles of Economics Study Set 4
  4. Quiz 26: Exchange Rates, International Trade, and Capital Flows

At Each Value of the Domestic Interest Rate,decreases in the Riskiness

Question 113
Multiple Choice

At each value of the domestic interest rate,decreases in the riskiness of domestic assets ______ capital inflows,______ capital outflows,and ______ net capital inflows. A)increase;increase;increase B)increase;increase;decrease C)increase;decrease;increase D)decrease;decrease;decrease

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Q 114
In an open economy,domestic investment equals: A)net capital inflows. B)domestic saving plus net capital outflows. C)domestic saving. D)domestic saving plus net capital inflows.
Q 115
In an open economy,the domestic real interest rate is determined by: A)domestic saving,domestic investment,and net capital inflows. B)domestic investment. C)domestic saving and domestic investment. D)domestic saving and net capital inflows.
Q 116
In an open economy,an increase in capital inflows ______ the equilibrium domestic real interest rate and ______ the quantity of domestic investment. A)increases;increases B)increases;decreases C)decreases;decreases D)decreases;increases
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