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If People in the U

question 48

Essay

If people in the U.S. choose to save a smaller percentage of income, what will happen to the interest rate, net capital outflow, the exchange rate, and net exports?


Definitions:

Favored Customers

Those who receive special treatment from dealers during situations of excess demand.

Special Treatment

The act of giving preferential or unique consideration or handling to a particular person or group.

Supply Fixed

A situation where the availability of a good or service is limited and cannot be easily adjusted.

Unique Product

A product that is different from anything else on the market, either because of its brand, design, or functionality, giving it a competitive advantage.

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