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6. What are the effects of an increase in the supply of loanable funds? a. Net capital outow and the real exchange rate both increase.

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6. What are the effects of an increase in the supply of loanable funds? a. Net capital outow and the real exchange rate both increase. b. Net capital outow and the real exchange rate both decrease. 0. Net capital outow increases, and the real exchange rate decreases. (1 Net capital outow decreases, and the real exchange rate increases

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