A small open economy with free capital mobility experiences a temporary adverse supply shock and the country's current account balance to This causes the world real interest rate to remain unchanged; fall fall; fall remain unchanged; rise rise; rise
A small open economy with free capital mobility experiences a temporary adverse supply shock and the country's current account balance to This causes the world real interest rate to remain unchanged; fall fall; fall remain unchanged; rise rise; rise
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A small open economy with free capital mobility experiences a temporary adverse supply shock.
This causes the world real interest rate to
and the country's current account balance to
remain unchanged; fall
fall; fall
remain unchanged; rise
rise; rise
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