In the Open-Economy Macroeconomic Model,which of the Following Increases Net

question 42

Multiple Choice

In the open-economy macroeconomic model,which of the following increases net capital outflow?

• A)a fall in the real exchange rate,but not a fall in the real interest rate
• B)a fall in the real interest rate,but not a fall in the real exchange rate
• C)both a fall in the real exchange rate and a fall in the real interest rate
• D)neither a fall in the real exchange rate nor a fall in the real interest rate

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Definitions:

Ethical Dilemma

A situation where a person faces conflicting moral choices and no option seems ethically superior to others.

Authority

The power or right to give orders, make decisions, and enforce obedience, or an organization or person having this power.

Monogamous Marriage

A type of marital union where one individual has only one spouse at a time.

Inheritance

The process or act of receiving property, money, or titles from someone who has died.