In the Open-Economy Macroeconomic Model,the Key Determinant of Net Capital

question 32

Multiple Choice

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

• A)the real exchange rate.When the real exchange rate rises,net capital outflow rises.
• B)the real exchange rate.When the real exchange rate rises,net capital outflow falls.
• C)the real interest rate.When the real interest rate rises,net capital outflow rises.
• D)the real interest rate.When the real interest rate rises,net capital outflow falls.

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Definitions:

Emperor of the West

Historically refers to the ruler of the Western Roman Empire, specifically after its division from the Eastern Empire.

Honorius

A Roman Emperor of the West (395-423 AD) known for his reign during the period of the empire's decline in the face of Visigothic invasions and internal strife.

Constantinople

The historical name for the modern city of Istanbul from its founding in 330 AD until the Ottoman conquest in 1453, serving as the capital of the Byzantine Empire.

Milan

A city in Northern Italy, recognized as a leading global fashion and design capital, with a rich history in art and architecture.