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In the Open-Economy Macroeconomic Model,which of the Following Increases Net

Question 3

Multiple Choice

In the open-economy macroeconomic model,which of the following increases net capital outflow?


A) a fall in the real exchange rate,but not a fall in the real interest rate
B) a fall in the real interest rate,but not a fall in the real exchange rate
C) both a fall in the real exchange rate and a fall in the real interest rate
D) neither a fall in the real exchange rate nor a fall in the real interest rate

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