Consider the open economy model

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Consider the open economy model. Suppose that U.S. investors decide to invest more in Canada. What happens to the real interest rate, the real exchange rate, the net capital ouflow, and the net exports in Canada and in the U.S.?

Reference no: EM13981116

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Consider the open economy model : Consider the open economy model. Suppose that U.S. investors decide to invest more in Canada. What happens to the real interest rate, the real exchange rate, the net capital ouflow, and the net exports in Canada and in the U.S.?

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