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You Have Just Read in the Newspaper That a Hurricane

Question 57

Multiple Choice

You have just read in the newspaper that a hurricane has destroyed Guatemala's coffee crop for this year.Guatemala is a small open economy.Based on this information alone,you would expect that


A) desired investment would fall in Guatemala.
B) desired investment would increase in Guatemala.
C) net foreign lending by Guatemala would increase.
D) net foreign lending by Guatemala would decrease.

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