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Suppose the level of domestic investment in a country rises, while the level of private and public saving remains unchanged. In these circumstances, which of

Suppose the level of domestic investment in a country rises, while the level of private and public saving remains unchanged. In these circumstances, which of the following is true?

the rise in domestic investment will mean a smaller trade deficit

the rise in domestic investment will mean a larger trade deficit

government borrowing will increase sharply

the rise in domestic investment will mean a larger trade surplus

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