Other Things the Same,in the Open-Economy Macroeconomic Model,which of the Following

question 39

Multiple Choice

Other things the same,in the open-economy macroeconomic model,which of the following would make China's net capital outflow increase?

• A)an increase in U.S.interest rates
• B)an increase in Chinese interest rates
• C)an appreciation of the Chinese yuan
• D)None of the above is correct.

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Definitions:

Investment

An investment is an asset or item acquired with the goal of generating income or appreciation over time.

Schedule D

A form used with tax returns to report capital gains and losses from transactions of capital assets.

Trade or Business

An activity undertaken by a person or entity for the purpose of earning profit from selling goods or services.

Capital Assets

Long-term property owned for investment or personal purposes, including stocks, bonds, real estate, and equipment.