In the Open-Economy Macroeconomic Model,if a Country's Interest Rate Rises,its

question 25

Multiple Choice

In the open-economy macroeconomic model,if a country's interest rate rises,its net capital outflow

• A)rises and the real exchange rate rises.
• B)falls and the real exchange rate falls.
• C)rises and the real exchange rate falls.
• D)falls and the real exchange rate rises.

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Definitions:

Density

The mass per unit volume of a substance, often measured in grams per cubic centimeter (g/cm³) or kilograms per cubic meter (kg/m³).

Volume

The amount of space occupied by an object or substance, commonly measured in liters, cubic meters, or gallons.

Material

A substance from which a thing is made or can be made, often used in the context of physical properties and applications.

Density

A measure of mass per unit of volume; the amount of matter contained within a given volume.