Exam 17: Open Economy Macroeconomics

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The open-economy multiplier is equal to the reciprocal of the marginal propensity to save.

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The BP curve is upward sloping if assets are perfectly substitutable.

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The global financial crisis that began in 2008 was a great illustration of how interdependent national economies are.

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At higher income levels the interest rate must be lower to achieve money market equilibrium.

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