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Exercise 3. Suppose that due to exceptionally good weather in the Midwest, the United States experiences an increase in grain production in period 1. Use
Exercise 3. Suppose that due to exceptionally good weather in the Midwest, the United States experiences an increase in grain production in period 1. Use a graphical approach to analyze the effect of this shock on the current account, savings, investment, and the world interest rate in the United States and in a small open economy such as El Salvador
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
