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Department
Economics
Course
Economics 2152A/B
Professor
Ayoub Yousefi
Semester
Fall

Description
Chapter 5, Saving and Investment in Open Economy - In large open economies o Large open economy is large enough to affect world real rate of interest. - Home vs Foreign Economy d d w In summary, any shift in either S or I lines at home or the foreign economy will impact r Fiscal Policy and the Current Account Question: Are government budget deficits necessarily accompanied by current account deficits? Are there twin deficits? S = Y – C – G Facts: - An increase in the government budget deficit raises the CA deficit only if the increase in budget deficit redu
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