On the following graph, plot the relationship between the real interest rate and net capital outflow by using the green points (triangle symbol) to plot the points from the initial data table. Then use the black point (X symbol) to indicate the level of net capital outflow at the equilibrium real interest rate you derived in the previous graph. REAL INTEREST RATE -20 Net Capital Outflow 10 -5 8 6 -15 0 5 10 -10 NET CAPITAL OUTFLOW (Billions of dollars) 15 20 A NCO + Eqm. NCO (?) Because of the relationship between net capital outflow and net exports, the level of net capital outflow at the equilibrium real interest rate implies that the economy is experiencing h Ⓡ

On the following graph, plot the relationship between the real interest rate and net capital outflow by using the green points (triangle symbol) to plot the points from the initial data table. Then use the black point (X symbol) to indicate the level of net capital outflow at the equilibrium real interest rate you derived in the previous graph. REAL INTEREST RATE -20 Net Capital Outflow 10 -5 8 6 -15 0 5 10 -10 NET CAPITAL OUTFLOW (Billions of dollars) 15 20 A NCO + Eqm. NCO (?) Because of the relationship between net capital outflow and net exports, the level of net capital outflow at the equilibrium real interest rate implies that the economy is experiencing h Ⓡ

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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