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7. Consider the open economy model. An increase in the world interest rate leads to A. An outward shift in both the investment and savings

7. Consider the open economy model. An increase in the world interest rate leads to

A. An outward shift in both the investment and savings curves

B. An outward shift in the investment curve but no shift in the savings curve

C. An inward shift in the investment curve but no shift in the savings curve

D. None of the above/not enough information to determine

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