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    Economics Principles and Policy Study Set 2
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    Exam 36: Exchange Rates and the Macroeconomy
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    A Fall in the Domestic Interest Rate Leads to Capital
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A Fall in the Domestic Interest Rate Leads to Capital

Question 136

Question 136

Multiple Choice

A fall in the domestic interest rate leads to capital


A) outflows and exchange rate appreciation.
B) outflows and exchange rate depreciation.
C) inflows and exchange rate depreciation.
D) inflows and exchange rate appreciation.

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