Question
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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International Economics
Authors: Dominick Salvatore
11th edition
978-1118177938, 1118177932, 1119915732, 978-1118476017, 1118476018, 978-1119915737
