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Assume that the New Zealand Government imposes an investment tax which decreases the demand for loanable funds. Which of the following best explains what happens
Assume that the New Zealand Government imposes an investment tax which decreases the demand for loanable funds. Which of the following best explains what happens in the (3-panel) open-economy model, ceteris paribus? The real interest rate ; net capital outflow (NCO) ; the supply of NZ dollars ; the NZ dollar real exchange rate ; net exports (NX) Select one alternative: O falls; increases; increases; depreciates; falls O falls; increases; increases; depreciates; rises O falls; increases; increases; appreciates; falls O rises; decreases; decreases; appreciates; falls
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