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    Macroeconomics Study Set 8
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    Exam 5: Saving and Investment in the Open Economy
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    When a Temporary Adverse Supply Shock Hits a Small Open
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When a Temporary Adverse Supply Shock Hits a Small Open

Question 89

Question 89

Multiple Choice

When a temporary adverse supply shock hits a small open economy,it causes the current account to ________ and investment to ________.


A) fall;fall
B) rise;remain unchanged
C) fall;remain unchanged
D) rise;fall

Correct Answer:

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