Which of the Following Is Correct Concerning the Open-Economy Macroeconomic

question 33

Multiple Choice

Which of the following is correct concerning the open-economy macroeconomic model?

• A)The net-capital-outflow curve slopes upward.
• B)The key determinant of net capital outflow is the real exchange rate.
• C)The supply of dollars in the market for foreign-currency exchange is vertical.
• D)None of the above is correct.

---

Definitions:

Federal Income Tax

The tax imposed by the U.S. government on the income generated by businesses and individuals within its jurisdiction.

Gross Earnings

The total amount of money earned by an individual or company before any deductions or taxes are applied.

Medicare Withholding

The portion of an employee's paycheck that is deducted to contribute to the Medicare program, which provides health insurance to individuals who are over 65 or meet other specific criteria.

Social Security Withholding

The portion of an employee's wage that is deducted and sent to the government to fund Social Security benefits.