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    Macroeconomics Study Set 16
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    Exam 10: Exchange Rates, Business Cycles, and Macroeconomic Policy in the Open Economy
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    Which of the Following Is Not a Reason for Why
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Which of the Following Is Not a Reason for Why

Question 69

Question 69

Multiple Choice

Which of the following is not a reason for why domestic and foreign interest rates might differ?


A) differences in transaction costs
B) differences in default risk
C) expected changes in exchange rate
D) differences in the bonds interest rate

Correct Answer:

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