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As the Real Interest Rate in the Domestic Loanable Funds

Question 140

Multiple Choice

As the real interest rate in the domestic loanable funds market increases,


A) the cost of purchasing goods and services during the current period will decrease.
B) the net inflow of capital from abroad will increase.
C) the inflationary premium will rise and the money rate of interest will decline.
D) a trade surplus will occur.

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