Why does a temporary increase in government spending cause the current account to fall by a smaller
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Why does a temporary increase in government spending cause the current account to fall by a smaller amount than does a permanent increase in government spending?
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Figure can be used to show that any permanent fiscal expansion worsens the current account In this d...View the full answer
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Related Book For
International Economics Theory and Policy
ISBN: 978-0273754206
9th Edition
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
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