21. An elimination of tariffs on goods imported into Moldavia increases its budget deficit. Which of the following would definitely be a long run result of these changes to the Moldavian macroeconomy? I. II. III. The real interest rate in Moldavia rises. The real exchange rate in Moldavia rises. The level of net exports in Moldavia falls. a. I, II, and III b. I and III only c. d. III only II and III only

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21.
An elimination of tariffs on goods imported into Moldavia increases its budget
deficit. Which of the following would definitely be a long run result of these
changes to the Moldavian macroeconomy?
I.
II.
III.
The real interest rate in Moldavia rises.
The real exchange rate in Moldavia rises.
The level of net exports in Moldavia falls.
a. I, II, and III
b.
I and III only
c.
d.
III only
II and III only
Transcribed Image Text:21. An elimination of tariffs on goods imported into Moldavia increases its budget deficit. Which of the following would definitely be a long run result of these changes to the Moldavian macroeconomy? I. II. III. The real interest rate in Moldavia rises. The real exchange rate in Moldavia rises. The level of net exports in Moldavia falls. a. I, II, and III b. I and III only c. d. III only II and III only
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