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Consider a small open economy in equilibrium with a zero current account balance. What happens to national saving, investment, and the current account balance in

Consider a small open economy in equilibrium with a zero current account balance. What happens to national saving, investment, and the current account balance in equilibrium if (20 points)

(a) future income rises?

  • business taxes rise?
  • government expenditures decline temporarily?
  • the future marginal product of capital rises?

Please answer with the graphs for each variant, thank you

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