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Unformatted text preview: problem of negative externalities. 3. Explain why firms operating in a perfectly competitive market would be able to make normal profits only in the long run. 4. Why might the goal of full employment conflict with the goal of economic growth? 5. What impact is a substantial rise in the level of interest rates in a country likely to have on its balance of payments? 6. Explain two reasons why international indebtedness is a problem for less developed countries. 2 M03/330/H(2)+ 223-035...
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- Spring '10