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2. Explain how a decrease in the domestic money supply causes no changes in net exports. Recessions often lead to calls for protectionist measures to

2. Explain how a decrease in the domestic money supply causes no changes in net exports. Recessions often lead to calls for protectionist measures to preserve domestic jobs. Sup- pose that a country that is in a recession imposes restrictions that sharply reduce the amount of goods imported by the country.

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