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If USCitizens Decide to Purchase More Foreign Assets at Each Interest

Question 163

Multiple Choice

If U.S.citizens decide to purchase more foreign assets at each interest rate,the U.S.real interest rate


A) increases,the real exchange rate of the dollar appreciates,and U.S.net capital outflow decreases.
B) increases,the real exchange rate of the dollar depreciates,and U.S.net capital outflow increases.
C) decreases,the real exchange rate of the dollar depreciates,and U.S.net capital outflow decreases.
D) decreases,the real exchange rate of the dollar appreciates,and U.S.net capital outflow increases.

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