In the Open-Economy Macroeconomic Model,if Foreign Interest Rates Rise and the U.S

question 41

Multiple Choice

In the open-economy macroeconomic model,if foreign interest rates rise and the U.S interest rate stays the same then,U.S.

• A)net capital outflow rises,so the supply of dollars in the market for foreign exchange shifts right.
• B)net capital outflow rises,so the demand for dollars in the market for foreign exchange shifts right.
• C)net capital outflow falls,so the supply of dollars in the market for foreign exchange shifts left.
• D)net capital outflow falls,so the demand for dollars in the market for foreign exchange shifts left.