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If a war broke out abroad, it would affect the U.S. economy if foreign investors seek a safe heaven for their portfolios in the US
If a war broke out abroad, it would affect the U.S. economy if foreign investors seek a safe heaven for their portfolios in the US? Use the model of the large open economy to examine each of the following effects of such a war. What happens in the United States to saving, investment, the trade balance, the interest rate, and the exchange rate?
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