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Consider a two-region global economy: Africa and the rest of the world (ROW). Prior to today, Africa did not trade with ROW, but now Africa
Consider a two-region global economy: Africa and the rest of the world ("ROW"). Prior to today, Africa did not trade with ROW, but now Africa opens up. If the real interest rate in Africa prior to opening up exceeded that in ROW, the Metzler diagram would predict Group of answer choices CA_{Africa} should rise and r_{ROW} should rise CA_{Africa} should fall and r_{ROW} should rise CA_{Africa} should rise and r_{ROW} should fall CA_{Africa} should fall and r_{ROW} should fall
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