When There Are Two Large Open Economies,the World Real Interest

question 48

Multiple Choice

When there are two large open economies,the world real interest rate will be such that

• A)desired international lending by one country equals desired international borrowing by the other country.
• B)desired international lending will be the same in both countries.
• C)desired international borrowing will be the same in both countries.
• D)desired international lending and borrowing will be zero in both countries.

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