In the Open-Economy Macroeconomic Model,if a Country's Interest Rate Rises,then

question 4

Multiple Choice

In the open-economy macroeconomic model,if a country's interest rate rises,then its

• A)net capital outflow and net exports rise.
• B)net capital outflow rises and its net exports fall.
• C)net capital outflow falls and its net exports rise.
• D)net capital outflow and net exports fall.

---

Definitions:

Free Association

A therapeutic technique in psychoanalysis where the patient voices their thoughts without reservation, revealing unconscious thoughts and feelings.

Analytic Thinking

The process of evaluating and dissecting complex problems or concepts to understand their components and derive conclusions.

Structural Model

An abstract representation that illustrates the framework of an object, system, or concept, detailing the arrangement and interaction of its parts.

Ego

The part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.