Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Question
Chapter 5, Problem 7RQ
To determine
Relationship between the current accounts of two countries when world real interest rate is at its equilibrium value.
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In a large open economy, if households’ current income increases, then the real interest rate __________ and the equilibrium current account for this economy __________.
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