Author Question: When the domestic currency depreciates, domestic goods become more expensive to foreign buyers. a. ... (Read 94 times)

ETearle · **on:** Jun 30, 2018

When the domestic currency depreciates, domestic goods become more expensive to foreign buyers.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Which of the following is true?
a. In equilibrium, with only two countries, the excess demand for loanable funds in one country will equal the excess supply of loanable funds in the other.
b. Countries with net capital inflows tend to be few or no capital outflows.
c. Capital flows will tend to decrease real interest rates in countries with a capital inflow.
d. Both a. and c. are correct.