Define a'small open economy'. Under this definition, is your co... | Filo
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SOLVED: The government of a small open economy is concerned about the size of its current account deficit. a) Is domestic Investment greater or less than domestic Saving? b) Suppose the government placed a tax on interest earned on foreign assets. How would this affect domestic Saving and Investment? c) Suppose the government placed a ban on trade with the rest of the world. How would this affect domestic Saving and Investment?
SOLVED: The government of a small open economy is concerned abou…
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