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Which of the Following Is Correct Concerning the Open-Economy Macroeconomic

Question 107

Multiple Choice

Which of the following is correct concerning the open-economy macroeconomic model?


A) The net-capital-outflow curve slopes downward.
B) The key determinant of net capital outflow is the real exchange rate.
C) The supply of dollars in the market for foreign-currency exchange is horizontal.
D) None of the above is correct.

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