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A Very Small Country Is an International Borrower

Question 94

Multiple Choice

A very small country is an international borrower.Its supply of loanable funds increases but it still remains a net foreign borrower.As a result, the equilibrium quantity of loanable funds used in the country _______ and the country's foreign borrowing _______ .


A) does not change; increases
B) increases; does not change
C) does not change; decreases
D) does not change; does not change
E) increases; decreases

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