Figure 13.1.U.S.Capital and Financial Account
-Refer to Figure 13.1.Upward movements along U.S.capital and financial account schedule CA₀ would be caused by:

Question

Figure 13.1.U.S.Capital and Financial Account -Refer to Figure 13.1.Upward movements along U.S.capital and financial account schedule CA₀ would be caused by:

Quizplus · Accepted Answer

An upward movement along the U.S. capital and financial account schedule CA₀ would be caused by U.S. interest rates rising relative to foreign interest rates, as this would attract more foreign capital into the U.S., increasing the capital inflow.