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    International Economics Study Set 9
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    Exam 15: Exchange Rates II: the Asset Approach in the Short Run
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    Normally, Whenever the Central Bank Lowers the Rate It Charges
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Normally, Whenever the Central Bank Lowers the Rate It Charges

Question 150

Question 150

Multiple Choice

Normally, whenever the central bank lowers the rate it charges banks for overnight loans, market rates of interest:


A) are not affected.
B) fall at the same rate.
C) increase.
D) are unstable.

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