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    Macroeconomics Study Set 9
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    Exam 5: The Global Financial System and Exchange Rates
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    Explain What Happens to the World Real Interest Rate If
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Explain What Happens to the World Real Interest Rate If

Question 63

Question 63

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Explain what happens to the world real interest rate if the government of Panama runs a large government budget deficit.

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Since Panama is a small open e...

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