Figure 32-5
Refer to this diagram of the open-economy macroeconomic model to answer the questions below.
-Refer to Figure 32-4. Suppose that U.S. firms desire to purchase more capital in the U.S. The effects of this could be illustrated by
A) shifting the demand curve in panel a to the right and the demand curve in panel c to the left.
B) shifting the demand curve in panel a to the right and the supply curve in panel c to the left.
C) shifting the supply curve in panel a to the right and the demand curve in panel c to the left.
D) shifting the supply curve in panel a to the right and the supply curve in panel c to the right.
Correct Answer:
Verified
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