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In 1998, the Russian Government Defaulted on Its Bonds

Question 38

Multiple Choice

In 1998, the Russian government defaulted on its bonds. According to the open-economy macroeconomic model, this should have


A) increased Russian interest rates and net exports.
B) reduced Russian interest rates and net exports.
C) increased Russian interest rates and reduced Russian net exports.
D) reduced Russian interest rates and increased Russian net exports.

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