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    Macroeconomics Study Set 10
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    Exam 13: Exchange Rates, business Cycles, and Macroeconomic Policy in the Open Economy
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    Describe the Effects of a Rise in the Domestic Real
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Describe the Effects of a Rise in the Domestic Real

Question 22

Question 22

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Describe the effects of a rise in the domestic real interest rate on the exchange rate and on both domestic and foreign net exports.

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The rise in the domestic real interest r...

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