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macro questions In an open economy context, an increase in foreign demand (Y*), will Select one: Q a. keep domestic output (Y) unchanged b. decrease

macro questions

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In an open economy context, an increase in foreign demand (Y*), will Select one: Q a. keep domestic output (Y) unchanged b. decrease domestic output (Y) c. Reduce Net Exports (NX) d. Increase Imports (IM) 0000 e. Increase domestic output (Y) Consider two bonds, one issued in pounds () in the UK and one issued in dollars ($) in the United States. Assume that both government securities are one-year bonds - paying the face value of the bond one year from now. The exchange rate (Et) stands at 1.4 dollars per pound (1=$1.4). The face values and prices on the two bonds are given by: a Face value Price United States $10,000 $ 9619 United Kingdom 10000 9718 What is nominal interest rate of the US bonds.7 (please answer in the xx.xx format, e.g. 12.34 to represent 12.34%)

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