In the Open-Economy Macroeconomic Model,if Net Capital Outflow Increases Then

question 80

Multiple Choice

In the open-economy macroeconomic model,if net capital outflow increases then

• A)the demand for dollars in the market for foreign-currency exchange shifts right.
• B)the demand for dollars in the market for foreign-currency exchange shifts left.
• C)the supply of dollars in the market for foreign-currency exchange shifts right.
• D)the supply of dollars in the market for foreign-currency exchange shifts left.

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Definitions:

Promissory Estoppel

A legal principle that prohibits a party from going back on a promise made to another party, if the latter has reasonably relied on that promise to their detriment.

Option Contract

A contract granting one party the option to execute a transaction, such as buying or selling an asset at a future date.

Unconscionable

Ridiculously inadequate.

Forbearance

The act of refraining from enforcing a right, obligation, or debt, often temporarily and under specific conditions.