All other things being equal, an increase in a country's real interest rate reduces net capital outflow.

Name: All other things being equal, an increase in a country's real interest rate reduces net capital outflow.
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Question

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According to the Interest Rate Parity condition, an increase in a country's real interest rate makes its assets more attractive to foreign investors, leading to an inflow of capital and a reduction in net capital outflow.

All Other Things Being Equal, an Increase in a Country's