In the Open-Economy Macroeconomic Model, the Key Determinant of Net

Multiple Choice

In the open-economy macroeconomic model, the key determinant of net capital outflow is the

A) real exchange rate.When the real exchange rate rises, net capital outflow rises.
B) real exchange rate.When the real exchange rate rises, net capital outflow falls.
C) real interest rate.When the real interest rate rises, net capital outflow rises.
D) real interest rate.When the real interest rate rises, net capital outflow falls.