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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Related Book For
Macroeconomics
ISBN: 9781292446127
11th Edition
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore
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