In the 2008 Global Financial Crisis, Many Investors Considered the U.S

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The Answer is ​ <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8615/11eb72d4_2a04_c1f3_8534_4f1c8563b8b6_TB8615_00.jpg" alt="​   The reduction in net capital outflows reduces the demand for loanable funds, which reduces the domestic interest rate. The lower domestic interest rate partially offsets some of the initial decrease in net capital outflows from the United States, but there is an overall decrease in net capital outflows. The reduction in net capital inflows reduces the supply of dollars in the foreign exchange market and increases the real exchange rate." class="answers-bank-image d-block" rel="preload" > The reduction in net capital outflows reduces the demand for loanable funds, which reduces the domestic interest rate. The lower domestic interest rate partially offsets some of the initial decrease in net capital outflows from the United States, but there is an overall decrease in net capital outflows. The reduction in net capital inflows reduces the supply of dollars in the foreign exchange market and increases the real exchange rate.

In the 2008 Global Financial Crisis, Many Investors Considered the U.S

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In the 2008 Global Financial Crisis, Many Investors Considered the U.S

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