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  3. Study Set
    Principles of Economics Study Set 8
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    Exam 32: A Macroeconomic Theory of the Open Economy
  5. Question
    In the Open-Economy Macroeconomic Model, a Higher Domestic Interest Rate
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In the Open-Economy Macroeconomic Model, a Higher Domestic Interest Rate

Question 134

Question 134

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In the open-economy macroeconomic model, a higher domestic interest rate reduces the quantity of loanable funds demanded

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