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:

Registered Outstanding Mortgage

A mortgage that is officially recorded and remains unpaid or not fully discharged.

Mortgage Value

The amount of money lent by a mortgagee (lender) to a mortgagor (borrower) for which the property is used as security.

Purchase Price

The amount of money paid to buy a particular product or service.

Bill of Sale

A legal document that transfers ownership of an asset from a seller to a buyer.