5. What will happen to the trade balance and the real exchange rate of a small open...

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5. What will happen to the trade balance and the real exchange rate of a small open economy when government purchases increase, such as during a war? Does your answer depend on whether this is a local war or a world war?

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Macroeconomics And The Financial System

ISBN: 9781429253673

1st Edition

Authors: N. Gregory Mankiw, Laurence Ball

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