If a freeze destroys much of the crop of an agricultural nation,then
A)the desired investment curve would shift to the left.
B)the desired investment curve would shift to the right.
C)net foreign lending would increase.
D)net foreign lending would decrease.

Question

Quizplus · Accepted Answer

A freeze that destroys much of the crop of an agricultural nation would likely lead to a decrease in the nation's income from exports, as there would be less agricultural produce to sell internationally. This decrease in income could lead to a reduction in the resources available for lending to foreign entities, hence net foreign lending would decrease.

If a Freeze Destroys Much of the Crop of an Agricultural