Suppose that war forces a small-open economy to exit from…

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Question Answered step-by-step Suppose that war forces a small-open economy to exit from… Suppose that war forces a small-open economy to exit from international trades and become a closed economy. If the country had a trade surplus before the war, what would you expect to happen to the real interest rate after closing the economy? a.The closed-economy real interest rate becomes higher than the world interest rate.   b.It cannot be determined by the information given.   c.The closed-economy real interest rate becomes lower than the world interest rate.   d.No changes in the real interest rate.    Business Economics Macroeconomics ECON 102 Share QuestionEmailCopy link Comments (0)