2.3 The Open-Economy Income-Expenditure Model
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Last updated 03 junho 2024
Use the textbook's model of a small, open economy with perfectly mobile capital to predict how each of the following shocks will affect a nation's national saving (S), investment (I), trade balance (
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According to the Classical small open economy model, what happens to domestic national saving, investment, the trade balance, and the real exchange rate in response to each of the following events? Draw
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