If The Santa Clara Fed has
lowered the interest rate. What will happen to:

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Question: If The Santa Clara Fed has lowered the interest rate. What will happen to: (i)   &…
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(i)                  
The real interest rate in Santa Clara

(ii)                
The nominal exchange rate in the short run (The
Santa Clara Peso/US dollar)

(iii)              
The nominal exchange rate in the long run (The
Santa Clara Peso/US dollar)

(iv)              
The current account deficit of Santa
Clara

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