xplain why net capital outflows and the real interest rate have an inverse relationship. Why do NCOs decrease as interest rates rise? Why do NCOs increase

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter9: Corporate Valuation And Financial Planning
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15. Explain why net capital outflows and the real interest rate have an inverse relationship. Why do NCOs decrease as interest rates rise? Why do NCOs increase as interest rates fall? Use Graphs!
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