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Assume that the real interest rate falls in Country Y. Which of the following will occur? (1 point) There will be an inflow of investment
Assume that the real interest rate falls in Country Y. Which of the following will occur? (1 point) There will be an inflow of investment funds to Country Y and a depreciation of Country Y's currency. There will be an outflow of investment funds from Country Y to other countries and a depreciation of Country Y's currency. There will be an outflow of funds from other countries to Country Y, increasing the demand for Country Y's currency. Residents of Country Y will no longer invest funds in other countries, limiting their investment to opportunities in Country Y. There will be an increased demand for the currency of Country Y, an appreciation of its currency, and a reduction in net exports from Country Y
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