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.

Question

Quizplus · Accepted Answer

An increase in U.S. interest rates would make U.S. assets more attractive, leading to capital outflow from China as investors seek higher returns in the U.S.

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