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Consider a Small Open Economy in Equilibrium with a Zero

Question 66

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Consider a small open economy in equilibrium with a zero current account balance.What happens to national saving,investment,and the current account balance in equilibrium if
(a)future income rises?
(b)business taxes rise?
(c)government expenditures decline temporarily?
(d)the future marginal product of capital rises?

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(a)Saving curve shifts left,so S falls,I...

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