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When tomorrow's income in a small open economy is expected to decrease,equilibrium variables in the loanable fund market in this small open economy will change.

When tomorrow's income in asmall open economyis expected to decrease,equilibrium variables in the loanable fund market in thissmall open economywill change.

Note: For each of the above blanks, fill in one of the following four choices:A. 1;B. 2;C. 3;D. none of the above. If your answer is 1, then you should fill A instead of 1 in the blank.

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