Assume a nation has an output level of 150. Suppose there is a sudden temporary drop in GDP by 16%. How will the trade balance evolve if this country has access to global financial markets with an interest rate of 5%?

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The Answer of Assume a nation has an output level of 150. Suppose there is a sudden temporary drop in GDP by 16%. How will the trade balance evolve if this country has access to global financial markets with an interest rate of 5%?

Assume a Nation Has an Output Level of 150