ASSIGNMENT 3 SEMESTER 1 2025
UNIQUE NO. 587637
DUE DATE: 14 MAY 2025
, Question 1
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Question text
In an IS-LM model for an open economy, _______
Select one:
A.
an increase in the interest rate leads to capital inflow and a depreciation of the
exchange rate.
B.
a decrease in the interest rate leads to capital outflow and an appreciation of the
exchange rate.
C.
an increase in the interest rate leads to capital inflow and an appreciation of the
exchange rate.
D.
a decrease in the interest rate leads to capital inflow and a depreciation of the exchange
rate.
Question 2
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