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2. The government of Vitapolis engages in deficit spending. The currency of Vitapolis is vita. Financial Capital Inflows: ____ CA or CFA (circle one) balance:____

2. The government of Vitapolis engages in deficit spending. The currency of Vitapolis is vita. Financial Capital Inflows: ____ CA or CFA (circle one) balance:____ Show the impact of government deficit spending on the real interest rates. Show the impact of the change in the real interest rates on the value of vita in terms of bera, the currency of Vitapolis's trading partner

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