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According to the large open economy model with floating exchange rates, a fall in housing prices that reduces household wealth will lead to: C} a.
According to the large open economy model with floating exchange rates, a fall in housing prices that reduces household wealth will lead to: C} a. increase in interest rates, increase in output, increase in net capital outflows, and depreciation of the exchange rate. '3' b. decrease in interest rates, decrease in output, increase in net capital outflows, and depreciation of the exchange rate. C} c. increase in interest rates, increase in output, appreciation of the exchange rate, and a decrease in net exports. '3 d. decrease in interest rates, increase in output, depreciation ofthe exchange rate, and increase in net exports
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