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If in the combined loanable funds and foreign exchange markets, US's economy is perfectly open to international flows of capital and commodities and the world's
If in the combined loanable funds and foreign exchange markets, US's economy is perfectly open to international flows of capital and commodities and the world's rate of interest is above the domestic rate of interest. If business conditions were to improve, how will domestic rate of interest, capital flows, exchange value of the dollar, export and import, and the balance of trade will be affected?
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