Question

and interest rates are 39. In countries with rapidly growing economies, like China and India, the demand for loanable funds is than in countries with slowly growing economies. smaller; higher larger; lower smaller; lower O larger; higher 40. Capital tends to: flow toward countries with high political risk. ignore political risk in the current time frame. flow toward countries with low political risk. O ignore political risk and focus on returns. 42. When the value of a pound sterling changes from US$1.50 to US$2, it follows that the: O pound sterling has depreciated. O U.S. dollar has depreciated. O value of a U.S. dollar has gone from £0.5 to £0.6. O U.S. dollar has appreciated. 43. If the U.S. dollar changes from $1 = €1 to $0.80 = €1: O U.S. goods are now cheaper in the eurozone. the dollar has been fixed by the United States and the euro bloc. the dollar has appreciated relative to the euro. the dollar has depreciated relative to the euro.

Answer 1

Answer

39.

larger; higher

with a greater demand of loanable funds, this will shift the demand curve of loanable funds to the right and increase interest rates.

40

flow toward countries with low political risk

Money supply flows rom countries from higher risk to lower risk.

42

pound sterling has depreciated

per pound value has depriciated , againsts US dollar.

43.

the dollar has appreciated relative to the euro.

the US dollar has appriciated in the ime period. (Please consider giving an uvote if you find it useful)