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Suppose Foreign Demand for U.S.products Increases

Question 167

Essay

Suppose foreign demand for U.S.products increases.
(A)Use the saving-investment approach to show what happens to the long-run interest rate.
(B)Use the four-diagram approach to show what happens to the long-run interest rate.
(C)What happens to the four shares of GDP?

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(A) The blured image line will shift to the right,an...

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