Figure 13.3.U.S.Capital and Financial Account Under a Fixed Exchange Rate System
-Refer to Figure 13.3.Decreases in U.S.interest rates relative to foreign interest rates would shift U.S.capital and financial account schedule CA₀ downward toward CA₁,resulting in net financial outflows from the United States.

Question

Figure 13.3.U.S.Capital and Financial Account Under a Fixed Exchange Rate System

-Refer to Figure 13.3.Decreases in U.S.interest rates relative to foreign interest rates would shift U.S.capital and financial account schedule CA₀ downward toward CA₁,resulting in net financial outflows from the United States.

Quizplus · Accepted Answer

The Answer of Figure 13.3.U.S.Capital and Financial Account Under a Fixed Exchange Rate System -Refer to Figure 13.3.Decreases in U.S.interest rates relative to foreign interest rates would shift U.S.capital and financial account schedule CA₀ downward toward CA₁,resulting in net financial outflows from the United States.

Figure 133