In the Open-Economy Macroeconomic Model,if a Country's Interest Rate Rises,its

question 25

Multiple Choice

In the open-economy macroeconomic model,if a country's interest rate rises,its net capital outflow

• A)rises and the real exchange rate rises.
• B)falls and the real exchange rate falls.
• C)rises and the real exchange rate falls.
• D)falls and the real exchange rate rises.

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Definitions:

Fast-food Restaurants

Eating establishments that offer quick service, convenience, and food typically prepared in a standardized manner.

Lodging Establishments

Businesses that provide temporary accommodation services, such as hotels, motels, inns, and bed-and-breakfasts.

Disclosure Statement

A document that outlines important details about a financial transaction or product to ensure transparency and informed decision-making.

Franchise

A type of business model where a business owner (franchisor) licenses their business name, products, and operating methods to an independent entrepreneur (franchisee).