Business
Business, 21.04.2020 16:14, angie07253

Assuming there is perfect capital mobility and no risk premium, compared to a large open economy, a small open economy is one in which the: exchange rate is floating. domestic interest rate equals the world interest rate. exchange rate is fixed. domestic interest rate is not equal to the world interest rate.

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Assuming there is perfect capital mobility and no risk premium, compared to a large open economy, a...

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