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Using the macroeconomic model for a small open economy studied, analyze the impact of the following event on Canadian savings, investment, exchange rate and trade

Using the macroeconomic model for a small open economy studied, analyze the impact of the following event on Canadian savings, investment, exchange rate and trade balance in the Canadian economy:

event: in theU.S.,the federal government ran very large budget deficits.

Explain thoroughly with words + graphs.

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