To compensate for trade imbalances, a rising trade surplus will cause capital inflows to rise / fall / remain unchanged / change ambiguously; and the domestic real interest rate to rise / fall / remain unchanged / change ambiguously.

To compensate for trade imbalances, a rising trade surplus will cause capital inflows to rise / fall / remain unchanged / change ambiguously; and the domestic real interest rate to rise / fall / remain unchanged / change ambiguously.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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To compensate for trade imbalances, a rising trade surplus will cause capital inflows to rise / fall
/ remain unchanged / change ambiguously; and the domestic real interest rate to rise / fall /
remain unchanged / change ambiguously.

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