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We now incorporate the open economy assumptions in chapter 5. Using the same graph as in chapter 4, explain why it is possible in an

We now incorporate the open economy assumptions in chapter 5. Using the same graph as in chapter 4, explain why it is possible in an open economy for desired national saving to not equal national investment when the economy is in goods market equilibrium. Use a small open economy in your analysis. Illustrate your answer graphically assuming the current account is in surplus

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