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In a small open economy we assume A) the nominal interest rate is exogenous. B) the real interest rate is endogenous. C) the real interest rate is…

 In a small open economy we assume

A) the nominal interest rate is exogenous.

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B) the real interest rate is endogenous.

C) the real interest rate is exogenous.

D) the real interest rate is set by the central bank.

 

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