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Question3. Suppose that Europe enters into recession and reduces the demand for US-produced goods. (4POINTS- 2pts each) Chapter 12 Question 3. Suppose that Europe enters

Question3.Suppose that Europe enters into recession and reduces the demand for US-produced goods.(4POINTS- 2pts each)

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Chapter 12 Question 3. Suppose that Europe enters into recession and reduces the demand for US-produced goods. (4 POINTS- 2 pts each) 3a) What will happen to the IS curve? Answer: 3b) Assuming that the interest remains constant in the US, what will happen to SRO? Answer: onstruction of the IS curve we assumed

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