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Under a Fixed Exchange Rate System,at Low Domestic Real Interest

question 1

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Under a fixed exchange rate system,at low domestic real interest rates net capital outflows are ________,so the central bank ________ foreign-exchange reserves.


Definitions:

External Locus

An individual's belief that external forces, beyond their personal control, significantly influence their life’s outcomes.

Control

The capacity to impact individuals' conduct or the progression of happenings.

External Locus

A belief that one's successes or failures result from external factors beyond one's control, contrasting with an internal locus of control.

Control

The capability to sway or steer the actions of people or the flow of occurrences.

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