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If the interest rate r* increases, what will happen to a countrys external wealth, other things equal? a) It will not be affected. b) It

If the interest rate r* increases, what will happen to a country’s external wealth, other things equal?

a) It will not be affected.

b) It will increase.

c) It will decrease.

d) It will depend on the sign of external wealth from the previous period.

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