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Zinaida [17]
3 years ago
11

Other things being equal, foreign governments and corporations would demand ____ U.S. funds if their local interest rates were l

ower than U.S. rates. Therefore, for a given set of foreign interest rates, foreign demand for U.S. funds is ____ related to U.S. interest rates.
1) less; inversely
2) more; positively
3) less; positively
4) more; inversely
Business
1 answer:
NikAS [45]3 years ago
6 0

Answer: Option (1) is correct.

Explanation:

If the interest rate in a home country is lower than the U.S rate of interest then the government and firms of home country won't demand for U.S. funds as it will become expensive for the corporations to borrow funds from U.S. at such a higher rate. Hence, less demand for U.S funds.

There is an inverse relationship between the U.S. interest rate and foreign demand for U.S. funds. If there is an increase in the U.S. interest rate as a result foreign demand for U.S. funds decrease. As it will be not affordable for the borrowers to take funds at a higher rates.

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Suppose in 2020, you purchase a house built in 2014. Which of the following would be included in the gross domestic product for
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7 0
2 years ago
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Answer:

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