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    Principles of Economics Study Set 2
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    Exam 32: A Macroeconomic Theory of the Open Economy
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    NARRBEGIN 32-2 Graph 32-2
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NARRBEGIN 32-2 Graph 32-2

Question 31

Question 31

Multiple Choice

NARRBEGIN 32-2
Graph 32-2
NARRBEGIN 32-2 Graph 32-2    -Which of the following statements is not correct when the government runs a budget deficit? A)  The supply of loanable funds decreases B)  The interest rate rises C)  Net foreign investment increases D)  The real exchange rate appreciates
-Which of the following statements is not correct when the government runs a budget deficit?


A) The supply of loanable funds decreases
B) The interest rate rises
C) Net foreign investment increases
D) The real exchange rate appreciates

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