When real interest rates decrease across Europe, this causes U. S. net capital outflow to decrease. The following graphs capture the effect this has on the market for loanable funds and net capital outflow: Real Interest Rate Quantity of Loanable Funds D 1 D 2 Supply Real Interest Rate Net Capital Outflow NCO 1 NCO 2 Indicate the effect these previous changes have on the U. S. market for foreign-currency exchange. Demand Supply Real Exchange Rate Quantity of Dollars Demand Supply As a result, the U. S. real exchange rate depreciates. True False

i believe it’s b because the rest don’t make sense

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.