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The Small Open Economy macroeconomic model assumes that GDI'I is constant. However, the model could he used to analyze the effects of a one-time increase

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The Small Open Economy macroeconomic model assumes that GDI'I is constant. However, the model could he used to analyze the effects of a one-time increase in GDP as a rightward shift of the supply of loanahle funds. What would the model predict about the real interest rate, net capital outflow, net exports, and the real exchange rate when GDP increases

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