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

question 38

Multiple Choice

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

• A)nominal exchange rate.
• B)nominal interest rate.
• C)real exchange rate.
• D)real interest rate.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behaviors.

Self-Serving Bias

The common tendency to attribute one’s successes to personal characteristics and failures to external factors.

Shock Machine

Often associated with psychological experiments, it refers to a device used to deliver an electric shock to a subject, typically used in studies on obedience, learning, and punishment.