In the Open-Economy Macroeconomic Model,the Key Determinant of Net Capital

question 32

Multiple Choice

In the open-economy macroeconomic model,the key determinant of net capital outflow is

• A)the real exchange rate.When the real exchange rate rises,net capital outflow rises.
• B)the real exchange rate.When the real exchange rate rises,net capital outflow falls.
• C)the real interest rate.When the real interest rate rises,net capital outflow rises.
• D)the real interest rate.When the real interest rate rises,net capital outflow falls.

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Definitions:

Assignee

A person to whom an assignment is made.

Obligor

In contract law, the party who is obligated to deliver on a promise or to undertake some act.

Assignment

A legal transfer of rights, benefits, or obligations from one party to another.

Quantum Meruit

is a Latin term meaning "as much as he has earned," used in legal contexts to describe the entitlement to be paid for services rendered or work done when no contract exists or where a contract exists but cannot be enforced.