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:

Overconfidence

The psychological state of being too confident in one’s own abilities, often leading to taking greater risks.

Recycling

The process of converting waste materials into new materials and objects, aiming to reduce consumption of fresh raw materials, energy usage, and environmental pollution.

Commons Dilemmas

A situation where individual interests conflict with the collective interest, often resulting in the overuse or degradation of a common resource.

Characteristics of the Resource

The attributes or properties that define the nature, utility, and limitations of a specific resource.