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.

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Definitions:

Trade Credits

An agreement where a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date.

Business

The organized efforts and activities of individuals to produce and sell goods and services for profit.

Accounting Methods

The systematic practices a business uses to record and manage its financial transactions.

Ratio Comparisons

A method of financial analysis that involves comparing different financial ratios to assess a company's performance, financial health, or valuation.