Suppose that the rest of the world experiences an economic boom causing an increase in foreign output (Y*).This increase in Y* will not cause which of the following to occur?

Name: Suppose that the rest of the world experiences an economic boom causing an increase in foreign output (Y*).This increase in Y* will not cause which of the following to occur?
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Question

Quizplus · Accepted Answer

An increase in foreign output (Y*) typically leads to an increase in the domestic country's exports, improving the trade balance, not worsening it.

Suppose That the Rest of the World Experiences an Economic