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    Principles of Economics Study Set 8
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    Exam 32: A Macroeconomic Theory of the Open Economy
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    If a County Becomes Less Likely to Default on Its
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If a County Becomes Less Likely to Default on Its

Question 115

Question 115

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If a county becomes less likely to default on its bonds, what happens to that country's interest rate and exchange rate? Explain.

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A lower probability of default has the o...

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