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18. Assume that the world economy consists of only 2 large countries (the EU and the US). An exogenous decrease in the desire to save

18. Assume that the world economy consists of only 2 large countries (the EU and the US). An exogenous decrease in the desire to save on the part of US residents can cause: (a) improvement in the CAB of the EU and reduction in the (common) interest rate (b) improvement in the CAB of the EU and rise in the interest rate (c) deterioration in the CAB of the EU and reduction in the interest rate (d) deterioration in the CAB of the EU and rise in the interest rate (e) none of the above

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