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In a short-run model of a large open economy with a floating exchange rate, net capital outflow ______ as the domestic interest rate decreases and

In a short-run model of a large open economy with a floating exchange rate, net capital outflow as the domestic interest rate decreases and is just equal to the in net exports.

Question 30 Answer

a.

increases; increase

b.

decreases; increase

c.

increases; decrease

d.

decreases; decrease

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