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In an Open Economy,an Increase in Net Exports Because of Increased

Question 55

Multiple Choice

In an open economy,an increase in net exports because of increased demand for domestic products by foreigners should cause the domestic real interest rate to ________ and should cause desired saving minus desired investment to ________.


A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall

Correct Answer:

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