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:

Critical Point

In physical sciences, the condition under which a substance's properties change from one state to another, e.g., liquid to gas; in discussions, a pivotal moment that determines direction or outcome.

Delirium

An acute, usually reversible, mental disturbance characterized by confusion, disordered speech and hallucinations.

Terminally Ill

Describes a condition in which a disease is deemed incurable or untreatable and is expected to result in the death of the patient.

Elisabeth Kübler-Ross

A psychiatrist known for her theory on the five stages of grief: denial, anger, bargaining, depression, and acceptance.