Multiple Choice
Which of the following best predicts the effects of an increase in the supply of loanable funds?
A) The interest rate and the real exchange rate both increase.
B) The interest rate and the real exchange rate both decrease.
C) The interest rate increases, and the real exchange rate decreases.
D) The interest rate decreases, and the real exchange rate increases.
Correct Answer:
Verified
Correct Answer:
Verified
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