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When the Loanable Funds and Foreign Exchange Markets Are in Equilibrium

Question 44

Multiple Choice

When the loanable funds and foreign exchange markets are in equilibrium,


A) there are no leakages from the circular flow of income.
B) macro equilibrium cannot occur.
C) the leakages from the circular flow will equal the injections into it.
D) injections into the circular flow will exceed leakages from it.

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