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In the 2008 global financial crisis, many investors considered the U.S. economy a safe place to move their assets. What is the predicted impact of this inflow of financial capital to the United States, which is a large open economy, on the U.S. interest rate and the U.S. exchange rate, holding other factors constant. Illustrate your answer graphically and explain in words. The explanation should be similar to the graph below (If graph is correct)
This document contains various important questions and their appropriate answers in the subject field of Economics.
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