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A Large Open Economy Increases Its Desired Saving

question 26

Multiple Choice

A large open economy increases its desired saving.This causes the world real interest rate to ________ and the country's current account balance to ________.


Definitions:

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to repay the loan.

Inadequate

Lacking the quality or quantity required; insufficient for a purpose.

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