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United StatesEconomicsQuick questions

Unit 6: Open Economy - International Trade and Finance

Quick questions on Real interest rates and capital flows - AP Macroeconomics Topic 6.6

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Which way does financial capital flow when a country's relative real interest rate rises? [1 point]
What is q2?
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A capital inflow appreciates the currency. What happens to net exports? [1 point]

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