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Business, 25.11.2021 07:10 BluedragonKBT44

When real interest rates decrease across Europe, this causes U. S. net capital outflow to decrease. The following graphs capture the effect this has on the market for loanable funds and net capital outflow: Real Interest Rate Quantity of Loanable Funds D 1 D 2 Supply Real Interest Rate Net Capital Outflow NCO 1 NCO 2 Indicate the effect these previous changes have on the U. S. market for foreign-currency exchange. Demand Supply Real Exchange Rate Quantity of Dollars Demand Supply As a result, the U. S. real exchange rate depreciates. True False

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When real interest rates decrease across Europe, this causes U. S. net capital outflow to decrease....
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