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(solution) † 3. Resources in a newly settled country are likely to have great potential but are as yet


† 3. Resources in a newly settled country are likely to have great potential but are as yet undeveloped. Would you expect the real interest rate to be high or low? Comparing situations in which the new country is or is not in close contact with the rest of the world, in which situation will the interest rate be higher? In which will more investment take place? Explain.

 


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