Suppose we measure Canada's net capital outflow by what Statistics Canada calls "net international investment position," and we approximate the real exchange rate of the dollar by the price of Canadian dollar in terms of U.S. dollars. The following table gives data on these two variables, as provided by Statistics Canada.
a.What does our open-economy macro model predict with regard to the relationship between net capital outflow and the real exchange rate?
b.Do you find evidence in the data to support the theory?
c.If you find discrepancies between the data and the theory, what could cause them?
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Bullying
Unwanted aggressive behavior that involves a real or perceived power imbalance, often repeated over time.
Teasing
A behavior that involves playful, provoking, or mocking comments and actions towards others, often with the intent to amuse rather than harm.
Emotional Exhaustion
A state of feeling emotionally drained or depleted due to accumulated stress or demands in one’s personal or professional life.
Depersonalization
A psychological state where an individual feels detached from themselves or their surroundings, often as a response to stress or trauma.
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