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3. Recall our loanable fund model. How the real interest rate is determined in a closed economy? How is it determined in an open economy?

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3. Recall our loanable fund model. How the real interest rate is determined in a closed economy? How is it determined in an open economy? 4. If the nominal exchange rate of US dollar (S) to Euro (E) is 0.9 (1 USD 0.9 Eo. Suppose one Subway sandwich is S6 in the US. The same sandwich st4 in Europe. sing the Subway sandwich as our basket of goods, what is the real exchange rate of USD in terms of Euro. 3. Recall our loanable fund model. How the real interest rate is determined in a closed economy? How is it determined in an open economy? 4. If the nominal exchange rate of US dollar (S) to Euro (E) is 0.9 (1 USD 0.9 Eo. Suppose one Subway sandwich is S6 in the US. The same sandwich st4 in Europe. sing the Subway sandwich as our basket of goods, what is the real exchange rate of USD in terms of Euro

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