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liquidity preference is most helpful in understanding (Points : 1) the wealth effect. the exchange rate effect. the interest rate effect. misperceptions theory. 3. If a country experiences capital flight, which of the following curves shift right? (Points : 1) only the demand for loanable funds. only the supply of dollars in the market for foreign currency exchange. only the net capital outflow curve and the supply of dollars in the market for foreign currency exchange. the demand for loanable funds, the net capital outflow curve, and the supply of dollars in the market for foreign currency exchange. 4. net exports 5. Figure 32 1Refer to Figure 32 1. The loanable funds market is in equilibrium at (Points : 1) 2 percent, $20 billion. 4 percent, $40 billion. 6 percent, $60 billion. None of the above is correct. 6. government went from a budget surplus to a budget deficit. According to the open economy macroeconomic model, this should have decreased (Points : 1) both the supply of loanable funds and the supply of dollars in the market for foreign currency exchange. neither the supply of loanable funds nor the supply of dollars in the market for foreign currency exchange. the supply of loanable funds but not the supply of dollars in the market for foreign currency exchange. the supply of dollars in the market for foreign currency exchange, but not the supply of loanable funds. 7. The sticky wage theory of the short run aggregate supply curve says that when the price level rises more than expected, (Points : 1) production is more profitable and employment rises. production is more profitable and employment