Solve all this question......you will not solve all questions then I will give you down?? upvote.... Use the interactive graph of the foreign exchange market forCanadian dollars to illustrate the impact a net capital outflowwill have on the dollar's real exchange rate.Calculate the size of the net capital outflow that results in theCanadian loanable funds market.net capital outflow: $After the change in loanable funds, the real exchange rateappreciates.stays the same.depreciates.Real exchange rate321O0Supply of dollarsDemand for dollars100 200 300 400 500 600 700 800 900 1,000Quantity of Canadian dollars

Net Capital Outflow (NCO) refers to the internet flow of a rustic capital throughout its borders. It…

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Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter32: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 3PA

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Question

Solve all this question......you will not solve all questions then I will give you down?? upvote....

Use the interactive graph of the foreign exchange market for
Canadian dollars to illustrate the impact a net capital outflow
will have on the dollar's real exchange rate.
Calculate the size of the net capital outflow that results in the
Canadian loanable funds market.
net capital outflow: $
After the change in loanable funds, the real exchange rate
appreciates.
stays the same.
depreciates.
Real exchange rate
3
2
1
O
0
Supply of dollars
Demand for dollars
100 200 300 400 500 600 700 800 900 1,000
Quantity of Canadian dollars

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