Question 64(5 points)

Because of the threat of civil war, a country's

(To have a full mark in this question, you NEED to explain your answer in detail. Using NCO/NX graph, please provide your solution

Question 64 options:

a)

net exports increases and equilibrium real exchange rate falls

b)

None of the answers are correct

c)

net capital outflows and equilibrium real exchange rate increase

d)

net capital outflows decreases and equilibrium real exchange rate increases

e)

net capital outflows increases and equilibrium real exchange rate falls