Other Things the Same, in the Open-Economy Macroeconomic Model, Which

question 173

Multiple Choice

Other things the same, in the open-economy macroeconomic model, which of the following would make India's net capital outflow increase?

• 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.

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Definitions:

Annual Percentage Rates

The annual rate charged for borrowing or earned through an investment, inclusive of any fees or additional costs associated with the transaction.

Time Lines

Graphical representations used in project management and planning to illustrate the schedule and sequence of tasks or events.

Time Value

The principle that having money now is preferable to receiving the same sum later on, as it has greater earning potential.

Graphic Portrayal

Graphic portrayal involves the visual representation of data or concepts, using charts, graphs, or other graphical tools to illustrate relationships and trends.