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    International Economics Study Set 9
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    Exam 18: Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run
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    Considering Only the Goods and Forex Markets, as the Economy
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Considering Only the Goods and Forex Markets, as the Economy

Question 20

Question 20

Multiple Choice

Considering only the goods and forex markets, as the economy adjusts to lower rates of interest and equilibrium is restored, the level of GDP will:


A) fall.
B) rise.
C) become unstable.
D) decline very gradually.

Correct Answer:

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