Question

Other things equal, an increase in the U.S. net capital outflow _ the demand for loanable funds and _ the supply of dollars in the market for foreign currency exchange. a. increases; increases b. increases; decreases c. decreases; increases d. decreases; decreases

Name: other things equal an increase in the us net capital outflow the demand for loanable funds and the supply of dollars in the market for foreign currency exchange a increases increases b
Uploaded: 2023-05-25T12:26:30-08:00
Duration: 1 min 57 s
Channel: Richelle Chappell
Description: other things equal an increase in the us net capital outflow the demand for loanable funds and the supply of dollars in the market for foreign currency exchange a increases increases b

          Other things equal, an increase in the U.S. net capital outflow _______ the demand for loanable funds and _______ the supply of dollars in the market for foreign currency exchange.

a. increases; increases
b. increases; decreases
c. decreases; increases
d. decreases; decreases

Added by Hyungyu L.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Richelle Chappell

05/25/2023

Step 1

S. net capital outflow means that more U.S. investors are investing abroad, which requires them to convert their dollars into foreign currency. This increases the demand for loanable funds, as more funds are needed for these investments. At the same time, the Show more…

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Other things equal, an increase in the U.S. net capital outflow _______ the demand for loanable funds and _______ the supply of dollars in the market for foreign currency exchange. a. increases; increases b. increases; decreases c. decreases; increases d. decreases; decreases