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Assume the small open economy starts from a position of a balanced trade.Giving reasons, clearly explain what the effect of an expansionary fiscal policy abroad
Assume the small open economy starts from a position of a balanced trade.Giving reasons, clearly explain what the effect of an expansionary fiscal policy abroad (by a large open economy) will be on the trade balance of a small open economy?You may need to draw diagrams to determine the effect. However, do not provide diagrams with the answer.
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