If the Exchange Rate Rises,which of the Following Falls in the Open-Economy

question 15

Multiple Choice

If the exchange rate rises,which of the following falls in the open-economy macroeconomic model?

• A)desired net exports and desired net capital outflow
• B)desired net exports but not desired net capital outflow
• C)desired net capital outflow but not desired net exports
• D)neither desired net exports nor desired net capital outflow

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