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.