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Valdemar is a small, open economy. If the world real interest rate increases, in the long run, which of the following results can be obtained in Valdemar? I. currency. II. Lower investments. Select one: a. A real depreciation of Valdemar's O b. O c. d. Option I is correct Both Options I and II are incorrect. Both Options I and II are correct. Option II is correct.

Valdemar is a small, open economy. If the world real interest rate increases, in the long run, which of the following results can be obtained in Valdemar? I. currency. II. Lower investments. Select one: a. A real depreciation of Valdemar's O b. O c. d. Option I is correct Both Options I and II are incorrect. Both Options I and II are correct. Option II is correct.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Valdemar is a small, open economy. If the world real interest rate increases, in the long run, which of the following results can be obtained in Valdemar? I. A real depreciation of Valdemar's currency. II. Lower investments. Select one: O a. b. O d. Option I is correct Both Options I and II are incorrect. Both Options I and II are correct. Option II is correct.
Transcribed Image Text:Valdemar is a small, open economy. If the world real interest rate increases, in the long run, which of the following results can be obtained in Valdemar? I. A real depreciation of Valdemar's currency. II. Lower investments. Select one: O a. b. O d. Option I is correct Both Options I and II are incorrect. Both Options I and II are correct. Option II is correct.
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