As the Real Interest Rate ________,Net Capital Outflows ________ and Net

question 147

Multiple Choice

As the real interest rate ________,net capital outflows ________ and net exports ________.

• A) increases; increase; increase
• B) decreases; decrease; decrease
• C) increases; decrease; decrease
• D) decreases; increase; decrease

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Definitions:

Semi-Strong Form

A hypothesis suggesting that all publicly available information is already reflected in stock prices, negating the ability to earn excess returns.

Information Announcement

A disclosure of new, relevant details intended to inform investors, employees, and the public about a company's financial health, operational changes, or other significant news.

Stock Price

The current price at which a share of a company is being traded on the stock market.

Common Stock

A type of security that represents ownership in a corporation, with holders usually having voting rights and potentially receiving dividends.