In the Open-Economy Macroeconomic Model,if the Supply of Loanable Funds

question 20

Multiple Choice

In the open-economy macroeconomic model,if the supply of loanable funds increases,net capital outflow

• A)and the real exchange rate increase.
• B)and the real exchange rate decrease.
• C)increases and the real exchange rate decreases.
• D)decreases and the real exchange rate increases.

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Definitions:

Recession

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