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In the Open-Economy Macroeconomic Model,if the Supply of Loanable Funds

Question 18

Multiple Choice

In the open-economy macroeconomic model,if the supply of loanable funds increases,then the interest rate


A) and the real exchange rate increase.
B) and the real exchange rate decrease.
C) increases and the real exchange rate decreases.
D) decreases and the real exchange rate increases.

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