Question: Problem 3 - Midterm 2014: Chile is a small open economy in the international market for funds that takes the real interest rate in the

Problem 3 - Midterm 2014: Chile is a small open economy

Problem 3 - Midterm 2014: Chile is a small open economy in the international market for funds that takes the real interest rate in the world funds market, r", as given. Further, Chile has a current account deficit since 2011, CA"

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