The key determinant of net capital outflow is the real exchange rate.

Name: The key determinant of net capital outflow is the real exchange rate.
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The key determinant of net capital outflow is the difference between domestic and foreign real interest rates, not the real exchange rate. Net capital outflow is primarily driven by investors seeking the highest returns on their investments, which are influenced by interest rates rather than exchange rates.

The Key Determinant of Net Capital Outflow Is the Real