As the real interest rate in the domestic loanable funds market increases,
a. the cost of purchasing goods and services during the current period will decline.
b. the net inflow of capital from abroad will increase.
c. the inflationary premium will rise, and the money rate of interest will decline.
d. the inflationary premium will fall, and the money rate of interest will rise.
B
Economics
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A) Purchasing Power Parity. B) a fixed AA curve. C) market speculation. D) tight monetary policy. E) symmetry.
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