Multiple Choice
If U.S.firms decide to invest more domestically at each interest rate,the real interest rate in the United States
A) decreases, the real exchange rate of the dollar depreciates, and U.S.net capital outflow decreases.
B) decreases, the real exchange rate of the dollar appreciates, and U.S.net capital outflow increases.
C) increases, the real exchange rate of the dollar appreciates, and U.S.net capital outflow decreases.
D) increases, the real exchange rate of the dollar depreciates, and U.S.net capital outflow increases.
Correct Answer:
Verified
Correct Answer:
Verified
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