In the Open-Economy Macroeconomic Model,if Investment Demand Increases,then

question 35

Multiple Choice

In the open-economy macroeconomic model,if investment demand increases,then

• A)net exports and the real exchange rate rise.
• B)net exports rise and the real exchange rate falls.
• C)net exports fall and the real exchange rate rises.
• D)net exports and the real exchange rate fall.

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Definitions:

Present Value

The worth at present of an upcoming monetary sum or flow of cash, given a predetermined return rate.

Maintenance Payments

Periodic payments made for the upkeep or support, often legally mandated in cases like alimony or child support.

Compounded Quarterly

The process of calculating interest added to the principal balance of an investment or loan every three months, leading to interest earned on interest.

Present Value

The contemporary valuation of a future money sum or cash flow series, based on a defined rate of interest.