The Country of Nowhere Is Politically Very Stable and Has

question 111

Multiple Choice

The country of Nowhere is politically very stable and has a long tradition of respecting property rights. If several other countries suddenly became politically unstable, which statement would happen?

• A) Nowhere's real interest rate would rise.
• B) Nowhere's real exchange rate would fall.
• C) Nowhere's net exports would fall.
• D) Nowhere's net exports would not change.

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