In the Open-Economy Macroeconomic Model, What Is the Key Determinant

question 141

Multiple Choice

In the open-economy macroeconomic model, what is the key determinant of net capital outflow?

• A) the nominal exchange rate
• B) the nominal interest rate
• C) the real exchange rate
• D) the real interest rate

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Definitions:

Cost Associated

Expenses linked to a specific business activity, project, or operation.

Merchandise To Customer

The process of selling and delivering products from a business to its customers.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made on a periodic basis, usually at the end of a financial reporting period, rather than after each transaction.

Merchandise Inventory

The total value of a company's goods that are available for sale, including raw materials, work-in-progress, and finished goods.