Suppose the development of the European Union leads to a greater demand for investment in Europe. You'd expect OA, a recession in Europe. OB. a decline in the world real interest rate. OC. a rise in the current account in Europe. D. an increase in the world real interest rate.

Brief Principles of Macroeconomics (MindTap Course List)
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ISBN:9781337091985
Author:N. Gregory Mankiw
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Chapter14: A Macroeconomic Theory Of The Open Economy
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QUESTION 8
Suppose the development of the European Union leads to a greater demand for investment in Europe. You'd expect
OA, a recession in Europe.
B. a decline in the world real interest rate.
OC, a rise in the current account in Europe.
D. an increase in the world real interest rate.
Transcribed Image Text:QUESTION 8 Suppose the development of the European Union leads to a greater demand for investment in Europe. You'd expect OA, a recession in Europe. B. a decline in the world real interest rate. OC, a rise in the current account in Europe. D. an increase in the world real interest rate.
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