6. Analyze the effects on a large open economy of a temporary adverse supply shock that hits...

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6. Analyze the effects on a large open economy of a temporary adverse supply shock that hits only the foreign economy. Discuss the impact on the home country’s national saving, investment, and current account balance—and on the world real interest rate. How does your answer differ if the adverse supply shock is worldwide?

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Macroeconomics

ISBN: 126164

8th Edition

Authors: Andrew B. Abel, Ben Bernanke, Dean Croushore

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