Because the United States is highly integrated with the international capital market, international capital flows tend to
A) counteract the negative effect on aggregate demand of lower interest rates.
B) counteract the positive effect on aggregate demand of higher interest rates.
C) strengthen the negative effects on aggregate demand of higher interest rates.
D) strengthen the negative effects on aggregate demand of lower interest rates.
Correct Answer:
Verified
Q113: A currency depreciation
A)reduces aggregate demand and increases
Q114: A closed economy is one that
A)uses tariffs.
B)uses
Q115: International trade tends to lower the value
Q116: International capital flows are purchases and sales
Q117: Expansionary fiscal policy in an open economy
A)leads
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