Question 1 In 2020-2021, the stock markets in the United States accounted for nearly 56 percent of world stock trading. The New York Stock Exchange (NYSE) and the NASDAQ are the largest stock exchange operators worldwide. The Dow Jones Industrial Average Index is a stock market index that tracks 30 large, publicly-owned blue-chip companies trading on the New York Stock Exchange and the NASDAQ. It is observed that the Dow Jones Industrial Average Index has kept on increasing. To illustrate, it increased from 23,504 on April 14, 2020 to 33,730 on April 15, 2021. Some analysts predict that this trend will continue for the rest of this year. Based on your understanding of Open-Economy Macroeconomics, explain briefly how this development affects the U.S. net capital outflow, the U.S. net exports, the U.S. real interest rate, and the US real exchange rate. Illustrate with a well labelled three-panel diagram. (20 marks) Question 1 In 2020-2021, the stock markets in the United States accounted for nearly 56 percent of world stock trading. The New York Stock Exchange (NYSE) and the NASDAQ are the largest stock exchange operators worldwide. The Dow Jones Industrial Average Index is a stock market index that tracks 30 large, publicly-owned blue-chip companies trading on the New York Stock Exchange and the NASDAQ. It is observed that the Dow Jones Industrial Average Index has kept on increasing. To illustrate, it increased from 23,504 on April 14, 2020 to 33,730 on April 15, 2021. Some analysts predict that this trend will continue for the rest of this year. Based on your understanding of Open-Economy Macroeconomics, explain briefly how this development affects the U.S. net capital outflow, the U.S. net exports, the U.S. real interest rate, and the US real exchange rate. Illustrate with a well labelled three-panel diagram. (20 marks)