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    Exam 18: Open-Economy Macroeconomics: Basic Concepts
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    If Real Interest Rates Increase, What Will Happen To
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If Real Interest Rates Increase, What Will Happen To

Question 12

Question 12

Essay

If real interest rates increase, what will happen to:
a. business fixed investment?
b. residential investment?
c. inventory investment?

Correct Answer:

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a. Increases in the real interest rate i...

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