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Question 3 a) What will be the effect of an appreciation of the US dollar on the current and capital account of the US? b)

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Question 3 a) What will be the effect of an appreciation of the US dollar on the current and capital account of the US? b) Suppose the US government increases its spending on various infrastructure projects (i.e. G Increases). What will be the effect of this on government savings, national savings, current account and capital account? Assume that taxes remain unchanged. Also assume that private savings remain unchanged. Show your working for full credit

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