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The country of Symkaria is a small open economy in the long run. The new President Sable increases government spending on weapons manufacturing. Explain what
The country of Symkaria is a small open economy in the long run. The new President Sable increases government spending on weapons manufacturing. Explain what happens to the real interest rate, price level, national savings, investment, consumption, and total output. What happens to the trade balance and the real exchange rate?
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