The chapter suggested that because large increases in oil, Ask an Expert

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The chapter suggested that because large increases in oil prices transfer income to countries that cannot rapidly increase their consumption or investment and therefore must save their windfalls, world real interest rates fall in the short run.

Put together data on the U.S. real interest rate for 1970-1976, a period that includes the first OPEC oil shock. How did the U.S. real interest rate behave?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M91923156

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