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Please solve this macroeconomics problem. . Suppose the home economy begins in trade balance with exports equal to imports, which are equal to 100. The

Please solve this macroeconomics problem.

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. Suppose the home economy begins in trade balance with exports equal to imports, which are equal to 100. The elasticity of demand for exports is Z! 10 and for imports is 0.50. Consider the implications of a 1% rise in competitiveness arising, for example, from a 1% rise in foreign relative to domestic prices. If the elasticity of demand for imports is 0.50, then the balance of trade (BT) will _(a) (13) improvement in the BT is (c) , reaching the value of . The lowest value of the elasticity of demand for imports that ensures an (Hint: choose your nonnumerical answers among the following options: "improve", "deteriorate", "remain unchanged")

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