Multiple Choice
In the open-economy macroeconomic model,if foreign interest rates rise and the U.S interest rate stays the same then,U.S.
A) net capital outflow rises,so the supply of dollars in the market for foreign exchange shifts right.
B) net capital outflow rises,so the demand for dollars in the market for foreign exchange shifts right.
C) net capital outflow falls,so the supply of dollars in the market for foreign exchange shifts left.
D) net capital outflow falls,so the demand for dollars in the market for foreign exchange shifts left.
Correct Answer:

Verified
Correct Answer:
Verified
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