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Assuming All Other Things Unchanged, a Higher SA Real Interest

Question 3

Multiple Choice

Assuming all other things unchanged, a higher SA real interest rate


A) decreases SA net capital outflow because SA residents and foreigners prefer to invest in SA.
B) None of these answers.
C) decreases SA net capital outflow because SA residents and foreigners prefer to invest abroad.
D) increases SA net capital outflow because SA residents and foreigners prefer to invest in SA.

Correct Answer:

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