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:

Cumulative Savings

Total savings accumulated over time usually as a result of cost-saving strategies and efficiencies.

Value Analysis

A systematic approach to assess the function of goods or services with the goal of reducing cost while maintaining or improving quality and performance.

Purchase Item

Refers to any good or service that is acquired by an individual or organization through buying.

Function

The specific purpose or role that an entity or a process serves within a larger system or organization.