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2 Answer True, False or Uncertain. Briefly explain your answer. No credit without explanation. [25 points] a (12 points)An increase in uncertainty leads to an

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2 Answer True, False or Uncertain. Briefly explain your answer. No credit without explanation. [25 points] a (12 points)An increase in uncertainty leads to an increase in precautionary saving and to an improvement in the current account in the first period. To answer this question use a two-period model without production and assume incomplete asset markets. Support your answer with graph and equations

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