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In a large open economy, what is one of the reasons the demand for loanable funds is downward sloping?
A. A lower real interest rate discourages domestic consumers from buying foreign assets and encourages foreigners to buy domestic assets.
B. A higher real interest rate encourages people to save.
C. A lower real interest rate discourages investment.
D. A higher real interest rate makes borrowing more expensive.
q.use the classical is-lm model for two countries to analyze the idea that the united states became a relatively more
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