Suppose that the government of the small nation of Stabilia is overturned by a military coup (the new ruling junta restores the country's old name of Instabilia). What would you expect to happen to Instabilia's real interest rate and real exchange rate?

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The Answer of Suppose that the government of the small nation of Stabilia is overturned by a military coup (the new ruling junta restores the country's old name of Instabilia). What would you expect to happen to Instabilia's real interest rate and real exchange rate?

Suppose That the Government of the Small Nation of Stabilia