Interest rate have large-small effect on real exchange rate, Microeconomics

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Interest rate have large-small effect on real exchange rate

Suppose that the federal government increases.

a. if the elasticity of national saving in relation to the world interest rate is very high, will this rise in the world interest rate have a larger or small effect on Canada's net capital outflow?

b. if the elasticity of Canada's exports in relation to the real exchange rate is very low, will this rise in the world interest rate have a large or small effect on Canada's real exchange rate?

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Microeconomics: Interest rate have large-small effect on real exchange rate

Reference No:- TGS038953

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Microeconomics: Interest rate have large-small effect on real exchange rate

Reference No:- TGS038953

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Deducting a dividends-received deduction

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Interest rate have large-small effect on real exchange rate

Reference No:- TGS038953

Recent Questions Asked Microeconomics

Q : Deducting a dividends-received deduction

Q : Pro and cons of sinking fund from viewpoint

Q : Liability on the property

Q : Interest rate have large-small effect on real exchange rate

Q : Predict effect of higher wood prices on equilibrium price

Q : Federal transfer tax on estate

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