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Country A Country B Interest Rate Interest Rate 12% 7% 94=70 billion Quantity 9B=50 billion Quantity Consider the following two countries in autarky. Suppose they

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Country A Country B Interest Rate Interest Rate 12% 7% 94=70 billion Quantity 9B=50 billion Quantity Consider the following two countries in autarky. Suppose they open up international financial flows. What will we expect happen to the quantity of loans in Country A and Country The quantity of loans in country A will increase The quantity of loans in country A will decrease The quantity of loans in country B will increase The quantity of loans in country B will decrease

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