The government in an open economy cuts spending to reduce the budget deficit. As a result, the

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The government in an open economy cuts spending to reduce the budget deficit. As a result, the interest rate _________, leading to a capital _________ and a currency _________.

a. falls; outflow; appreciation

b. falls; outflow; depreciation

c. falls; inflow; appreciation

d. rises; inflow; appreciation

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Brief Principles Of Macroeconomics

ISBN: 9780357133507

9th Edition

Authors: N. Gregory Mankiw

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Question Posted: Feb 28, 2024 04:01 AM

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The government in an open economy cuts spending to reduce the budget deficit. As a result, the

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Brief Principles Of Macroeconomics

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