The key determinant of net foreign investment is:
A) the real exchange rate
B) the nominal interest rate
C) the real interest rate
D) the nominal exchange rate
Correct Answer:
Verified
Q21: In the open economy:
A)Net foreign investment =
Q22: Graph 32-1 Q26: Ceteris paribus, if the Australian real interest Q29: An appreciation of the Australian real exchange Q30: In the macroeconomic model of the open Q30: The demand for loanable funds comes from: Q31: If the interest rate were below the Q32: In the market for foreign-currency exchange, the Q35: The theory of purchasing-power parity implies that Q36: The real exchange rate is:
A)
A)the nominal price
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