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Business, 16.02.2021 04:50 leannamat2106

Suppose that in the market for loanable funds, the governement is currently running a deficit, and net exports are negative. Then, there is a sharp recession, causing consumer spending on both domestic and imported goods to fall (just as is currently happening), so that the size of the trade deficit shrinks. What effect will this have on the market for loanable funds

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Suppose that in the market for loanable funds, the governement is currently running a deficit, and n...
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