Multiple Choice
What are the effects of an increase in the supply of loanable funds?
A) Net capital outflow and the real exchange rate both increase.
B) Net capital outflow and the real exchange rate both decrease.
C) Net capital outflow increases, and the real exchange rate decreases.
D) Net capital outflow decreases, and the real exchange rate increases.
Correct Answer:
Verified
Correct Answer:
Verified
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