In the open-economy macroeconomic model, which of the following increases net capital outflow?

a. a fall in the real exchange rate, but not a fall in the real interest rate
b. a fall in the real interest rate, but not a fall in the real exchange rate
c. both a fall in the real exchange rate and a fall in the real interest rate
d. neither a fall in the real exchange rate nor a fall in the real interest rate


b

Economics

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