In the Open-Economy Macroeconomic Model,which of the Following Would Make

question 4

Multiple Choice

In the open-economy macroeconomic model,which of the following would make India's net capital outflow decrease?

• A)a decrease in U.S.interest rates.
• B)a decrease in Indian interest rates.
• C)an appreciation of the Indian rupee.
• D)None of the above is correct.

---

Definitions:

Serial Position Effect

A memory phenomenon where items at the beginning and end of a list are more likely to be recalled than those in the middle.

Primacy Effect

The tendency to remember items at the beginning of a list better than those in the middle or at the end.

Autobiographical Memory

A subset of episodic memory, consisting of a person's recollections of their past experiences and events that have personal significance.

Semantic Memory

A portion of long-term memory that processes ideas and concepts that are not drawn from personal experience.