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    Exam 19: A Macroeconomic Theory of the Open Economy: How Policies and Events Affect an Open Economy
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    If People Thought That Many Banks in a Certain Country
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If People Thought That Many Banks in a Certain Country

Question 34

Question 34

Multiple Choice

If people thought that many banks in a certain country were at or near the point of bankruptcy,then that country's interest rate


A) and net exports would rise.
B) would rise and its net exports would fall.
C) would fall and its net exports would rise.
D) and its net exports would fall.

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