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A country has a floating exchange rate regime and has a deficit in its Balance of Payments. In this case what happens to the domestic
A country has a floating exchange rate regime and has a deficit in its Balance of Payments. In this case what happens to the domestic (that country's) interest rates? O Domestic interest rates decrease. O Domestic interest rates increase. O Domestic interest rates do not respond to the Balance of Payments at all. O None
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