In the Open-Economy Macroeconomic Model,if a Country's Interest Rate Rises,its

question 25

Multiple Choice

In the open-economy macroeconomic model,if a country's interest rate rises,its net capital outflow

• A)rises and the real exchange rate rises.
• B)falls and the real exchange rate falls.
• C)rises and the real exchange rate falls.
• D)falls and the real exchange rate rises.

---

Definitions:

Deceptive

Intended to mislead or trick, causing someone to believe something that is not true.

Credit Report

A detailed report of an individual's credit history prepared by a credit bureau and used by lenders to determine creditworthiness.

Prequalification Offer

An initial offer made based on a preliminary assessment of the recipient's qualifications, often used in loan or credit applications.

Consent Order

A consent order is a legal agreement approved by a judge or regulatory authority, where parties agree to specific terms without admitting guilt or liability.