Question: A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents. Analyze the effects on the country's current account balance, national

A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents. Analyze the effects on the country's current account balance, national saving, and investment, and on domestic and world real interest rates. Assume that before the capital controls were imposed, the large country was running a capital account surplus.

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