Multiple Choice
When there are two large open economies,the world real interest rate will be such that
A) desired international lending by one country equals desired international borrowing by the other country.
B) desired international lending will be the same in both countries.
C) desired international borrowing will be the same in both countries.
D) desired international lending and borrowing will be zero in both countries.
Correct Answer:
Verified
Correct Answer:
Verified
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