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If a county becomes more likely to default on its bonds,what happens to that country's interest rate and exchange rate? Explain.

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A higher probability of default leads to...

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Why do higher real interest rates lead to lower net capital outflow?

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Higher U.S.interest rates make U.S.asset...

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If the U.S.imposes a quota on cotton,then


A) both exports and imports of other goods will rise.
B) exports of other goods will rise and imports of other goods will fall.
C) exports of other goods will fall and imports of other goods will rise.
D) both imports and exports of other goods will fall.

E) B) and D)
F) All of the above

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Other things the same,when a Canadian company imports bicycles from the U.S. ,the open-economy macroeconomic model treats this transaction as an increase in the quantity of dollars demanded in the U.S.foreign-currency exchange market.

A) True
B) False

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