Multiple Choice
In a small open economy with perfect capital mobility, the real interest rate will always be:
A) above the world real interest rate.
B) below the world real interest rate.
C) equal to the world real interest rate.
D) equal to the world nominal interest rate.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q21: Illustrate with a graph the real exchange
Q22: In a small open economy, if consumer
Q23: In a large but open economy, when
Q24: In a small open economy, if the
Q25: A trade deficit can be financed in
Q27: If purchasing-power parity holds, then changes in
Q28: Starting from a trade balance, if the
Q29: The government of a small open economy
Q30: a In April 1995, Michel Camdessus, managing
Q31: What will be the effect of increase