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A Small Country Is a Net Foreign Borrower and Its

Question 42

Multiple Choice

A small country is a net foreign borrower and its supply of loanable funds increases. As a result, the equilibrium quantity of loanable funds used in the country and the countryʹs foreign borrowing .


A) increases; does not change
B) does not change; increases
C) does not change; does not change
D) does not change; decreases

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