There is ________ relationship between the real interest rate and net capital outflows.

Question

Quizplus · Accepted Answer

According to the interest rate parity theory, a higher real interest rate will encourage capital inflows and decrease net capital outflows, while a lower real interest rate will discourage capital inflows and increase net capital outflows. Therefore, there is a negative relationship between the real interest rate and net capital outflows.

There Is ________ Relationship Between the Real Interest Rate and Net