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    Exam 32: A Macroeconomic Theory of the Open Economy
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    Suppose That Foreign Investors Are Worried About the Political Stability
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Suppose That Foreign Investors Are Worried About the Political Stability

Question 53

Question 53

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Suppose that foreign investors are worried about the political stability of Acadia.How would that fear affect the real interest rate and the real exchange rate?

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In light of this political uncertainty, ...

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