In the Open-Economy Macroeconomic Model,if the Supply of Loanable Funds

question 20

Multiple Choice

In the open-economy macroeconomic model,if the supply of loanable funds increases,net capital outflow

• A)and the real exchange rate increase.
• B)and the real exchange rate decrease.
• C)increases and the real exchange rate decreases.
• D)decreases and the real exchange rate increases.

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Definitions:

Incomplete

Not having all parts or elements; lacking something.

Private Ownership Rights

Legal entitlements that allow individuals or companies to own property and assets, giving them control over use, management, and disposal.

Well Enforced

A term indicating that laws or regulations are effectively implemented and adhered to.

Future Value

The value of an investment or sum of money projected at a future date, taking into account factors like interest rates or returns.