In a Two-Country World,many Economists Argue That an Increase in the Real

question 128

Multiple Choice

In a two-country world,many economists argue that an increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy)

• A)tends to decrease domestic Real GDP.
• B)tends to increase domestic Real GDP.
• C)tends to have no impact on domestic Real GDP.
• D)has an indeterminable impact on domestic Real GDP given the above information.

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