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Suppose That from 1980 to 1987, Canadian Net Capital Outflows

question 183

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Suppose that from 1980 to 1987, Canadian net capital outflows decreased. According to the open-economy macroeconomic model, what could have caused this?


Definitions:

Impermeability

The quality of being impervious or resistant to external influences or substances.

Free Will

The concept that individuals have the capacity to make choices and take actions independent of external constraints or determinism.

Pessimism

The tendency to see the worst aspect of things or believe that the worst will happen; a lack of hope or optimism.

Human Nature

A term referring to the characteristics, feelings, and behavioral traits of humankind that are naturally ingrained.

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