Question 2: If the government of a small open economy wants to correct its trade deficit in the long run, which kind of policy should it pursue? Explain. 5₂ Loanable funds market Sº S*. I*.0 Iº(r) -I, S Foreign exchange market (S-1)⁰ NX*0 NX°(E) NX
Question 2: If the government of a small open economy wants to correct its trade deficit in the long run, which kind of policy should it pursue? Explain. 5₂ Loanable funds market Sº S*. I*.0 Iº(r) -I, S Foreign exchange market (S-1)⁰ NX*0 NX°(E) NX
Chapter1: Making Economics Decisions
Section: Chapter Questions
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