Consider Nowehereland, a small open economy. Suppose business people in Nowhereland are pessimistic about the future and

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answerhappygod
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Consider Nowehereland, a small open economy. Suppose business people in Nowhereland are pessimistic about the future and

Post by answerhappygod »

Consider Nowehereland, a small open economy. Suppose business
people in Nowhereland are pessimistic about the future and their
demand for funds decrease. What will happen to real interest rate,
net trade balance, net foreign investment and real exchange
rate?
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