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Which of the following is/are true? 1. In the classical model of the LR closed economy, when real interest rate increases, the investment spending schedule

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Which of the following is/are true? 1. In the classical model of the LR closed economy, when real interest rate increases, the investment spending schedule will not shift in the loanable funds market diagram. Il. In the classical model of the LR small open economy, when autonomous net exports increases, the net exports schedule will shift right in the foreign exchange market diagram. Select one: O A. Only I is true. O B. Only ll is true. O C. Both of the above are true. O D. None of the above is true

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