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A rise in stock prices that increases household wealth will, according to the large open economy model with floating exchange rates, lead to: Question 36Answer
A rise in stock prices that increases household wealth will, according to the large open economy model with floating exchange rates, lead to: Question 36Answer a. increase in interest rates, increase in output, appreciation of the exchange rate, and a decrease in net exports. b. decrease in interest rates, decrease in output, depreciation of the exchange rate, and increase in net exports. c. no change in income or net exports. d. no change in consumption or income
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