In the Open-Economy Macroeconomic Model,the Key Determinant of Net Capital

question 32

Multiple Choice

In the open-economy macroeconomic model,the key determinant of net capital outflow is

• A)the real exchange rate.When the real exchange rate rises,net capital outflow rises.
• B)the real exchange rate.When the real exchange rate rises,net capital outflow falls.
• C)the real interest rate.When the real interest rate rises,net capital outflow rises.
• D)the real interest rate.When the real interest rate rises,net capital outflow falls.

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Definitions:

Inverse Function

A function that reverses the operation of another function, meaning if one function takes an input to an output, the inverse function takes that output back to the original input.

Graph

A diagram representing data, mathematical functions, or relationships between variables, typically drawn on Cartesian coordinates.

Logarithm

The exponent or power to which a base, usually 10 or e, must be raised to produce a given number.

Logarithm

The exponent that indicates the power to which a base number must be raised to produce a given number.