What is the relationship between net exports and aggregate demand, and between net exports and capital flows?
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What is the relationship between net exports and aggregate demand, and between net exports and capital flows? If net exports increase, ceteris paribus, what happens to real GDP? If the domestic price level increases, ceteris paribus, what happens to net exports?
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Net exports NX represent the difference between a countrys total exports X and total imports M They play a crucial role in determining aggregate deman...View the full answer
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Related Book For 
Financial System Of The Economy Principles Of Money And Banking
ISBN: 9780765622464
5th Edition
Authors: Maureen Burton,Bruce Brown
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