Multiple Choice
Which of the following best predicts the effects of an increase in a country's real interest rate?
A) Its net capital outflow and the real exchange rate increase.
B) Its net capital outflow and the real exchange rate decrease.
C) Its net capital outflow increases and the real exchange rate decreases.
D) Its net capital outflow decreases and the real exchange rate increases.
Correct Answer:
Verified
Correct Answer:
Verified
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