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The Country of Frequencia Is Politically Very Stable and Has

Question 261

Multiple Choice

The country of Frequencia is politically very stable and has a long tradition of respecting property rights. If several other countries suddenly became politically unstable, we would expect Frequencia's


A) real interest rate to rise.
B) real exchange rate to fall.
C) net exports to fall.
D) None of the above is likely.

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