In an open economy, an increase in capital inflows ______ the equilibrium domestic real interest rate and ______ the quantity of domestic investment.
A)increases; increases
B)increases; decreases
C)decreases; does not change fall
D)decreases; increases

Question

Quizplus · Accepted Answer

The Answer of In an open economy, an increase in capital inflows ______ the equilibrium domestic real interest rate and ______ the quantity of domestic investment.
A)increases; increases
B)increases; decreases
C)decreases; does not change fall
D)decreases; increases

In an Open Economy, an Increase in Capital Inflows ______