Describe the Two Key Elements of the MAC Model

question 47

Essay

Describe the two key elements of the MAC model.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, usually expressed as an annual percentage.

Net Capital Outflow

The difference between the domestic purchase of foreign assets and the foreign purchase of domestic assets.

Loanable Funds

The total amount of funds available in the financial markets for borrowing, which determines the market interest rates.

U.S. Grocery Chain

A set of related supermarkets or grocery stores operating under a similar brand or management in various locations across the United States.