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    Principles of Macroeconomics Study Set 8
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    Exam 19: A Macroeconomic Theory of the Open Economy: How Policies and Events Affect an Open Economy
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    An Increase in the Budget Deficit Causes Domestic Interest Rates
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An Increase in the Budget Deficit Causes Domestic Interest Rates

Question 170

Question 170

Multiple Choice

An increase in the budget deficit causes domestic interest rates


A) and net capital outflow to rise.
B) to rise and net capital outflow to fall.
C) to fall and net capital outflow to rise.
D) and net capital outflow to fall.

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