Which of the Following Is Correct Concerning the Open-Economy Macroeconomic

question 107

Multiple Choice

Which of the following is correct concerning the open-economy macroeconomic model?

• A)The net-capital-outflow curve slopes downward.
• B)The key determinant of net capital outflow is the real exchange rate.
• C)The supply of dollars in the market for foreign-currency exchange is horizontal.
• D)None of the above is correct.

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