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(5M 4. Extending the standard macroeconomic model of Example 7.2.1 for an economy open to interna- tional trade gives: (O) Y = C+1+X -M; (ii)

(5M 4. Extending the standard macroeconomic model of Example 7.2.1 for an economy open to interna- tional trade gives: (O) Y = C+1+X -M; (ii) C =f(Y), with 0

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