Suppose some shock occurs to the U.S. economy that makes foreign investors more reluctant to hold U.S.
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Suppose some shock occurs to the U.S. economy that makes foreign investors more reluctant to hold U.S. assets. Use the AS/AD framework to explain the effects of this shock on the U.S. economy.
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We know from previous lessons that business cycles are deviations of GDP away from the long run tren...View the full answer
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