In the open-economy macroeconomic model, net capital outflow rises if
a. either the exchange rate rises or the real interest rate falls.
b. either the exchange rate falls or the real interest rate rises.
c. the real interest rate rises. Net capital outflow does not depend on the exchange rate.
d. the real interest rate falls. Net capital outflow does not depend on the exchange rate.
d
You might also like to view...
The substitution effect of a price change refers to
A) the change in quantity demanded that results from a change in price making a good more or less expensive relative to other goods that are substitutes. B) the shift in the demand curve due to a change in purchasing power brought about by the price change. C) the movement along the demand curve due to a change in purchasing power brought about by the price change. D) the shift of a demand curve when the price of a substitute good changes.
In recent years, economists have come to believe that full employment in the U.S. economy occurs at an unemployment rate between:
a. 1.0 and 2.0 percent. b. 2.5 and 3.5 percent. c. 4.5 and 5.5 percent. d. 6.5 and 7.5 percent.