In the Open-Economy Macroeconomic Model, the Real Exchange Rate Does

question 64

True/False

In the open-economy macroeconomic model, the real exchange rate does not affect net capital outflow.

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Definitions:

Imbalance of Trade

A situation where the value of a country's imports and exports is not equal, leading to a trade surplus or deficit.

Exceeded

means to go beyond an established limit or surpass a certain standard or level.

Lower

In economic terms, it refers to a decrease in value, price, rate, or level of a given variable or entity.

Trade Deficit

An occurrence where the total value of a country's imports surpasses the value of its exports, creating a negative trade balance.