In the Open-Economy Macroeconomic Model, Which of the Following Would

question 182

Multiple Choice

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

• A)a decrease in Canadian interest rates
• B)a decrease in Mexican interest rates
• C)an appreciation of the Mexican peso
• D)an increase in Mexico's net exports

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Definitions:

Reduce Uncertainty

Strategies or actions taken to minimize the unpredictability or variability in outcomes.

Leasing

A financial arrangement where a lessee pays the lessor for the use of an asset for a specified period of time, without owning the asset.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Net Advantage

The total benefits received minus the costs incurred from an investment or business decision.