Assuming that Nations 1 and 2 are both large, and starting from the equilibrium level of national
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(a) An autonomous increase in the exports of Nation 1 of 200 that replaces domestic production in Nation 2.
(b) An autonomous increase in investment of 200 in Nation 1.
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a K 1 MPS1 MPM1 MPM2 MPS1MPS2 1 020 020 010 020015 1 0533 188 YE Xk 200188 376 M YEM...View the full answer
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