420worksheet7 - this economy? 2. How will an increase in...

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Worksheet 7 Loanable funds market for a small open economy 1. Use the loanable funds market to show a trade deficit in a small open economy. How will an increase in fiscal spending abroad affect world interest rate and the trade deficit in
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Unformatted text preview: this economy? 2. How will an increase in domestic fiscal spending affect this country’s trade deficit?...
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This document was uploaded on 10/28/2011 for the course ECON 420 at UNC.

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