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Unformatted text preview: 2. Explain the multiplier effect of an increase in government spending. 3. Using an example, explain how the concept of opportunity cost is a key element in the theory of comparative advantage. 4. With reference to the Marshall-Lerner condition, explain how the depreciation of a countrys exchange rate might affect its current account balance. 5. Explain why economic growth is likely to generate external costs, which are a threat to sustainable development. 6. Explain the difference between outward-oriented and inward-oriented growth strategies....
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This note was uploaded on 02/12/2010 for the course ECON 201 taught by Professor Smith during the Spring '10 term at Whittier.
- Spring '10