Author Question: A decrease in the real interest rate outside of the United States will cause net capital outflows to ... (Read 94 times)

APUS57 · **on:** Jun 30, 2018

A decrease in the real interest rate outside of the United States will cause net capital outflows to ________ and cause the dollar to ________ relative to other currencies.

A) increase; appreciate
B) increase; depreciate
C) decrease; appreciate
D) decrease; depreciate

Question 2

In a model with money neutrality, a 10 increase in the money supply leads to an increase of prices by

A) more than 10.
B) 10.
C) less than 10, but more than zero.
D) zero.