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Imagine a world with two large countries, Home and Foreign. Evaluate how Home's macroeconomic policies affect Foreign. Compare the small and the large country cases; consider both permanent monetary and fiscal policies.
Y-intercept
The point where a line or curve crosses the y-axis of a graph, representing the value when all independent variables are zero.
Least Squares Line
A line that minimizes the sum of the squares of the vertical deviations from each data point to the line, often used in linear regression.
Interval Variables
Variables where the intervals between the values are interpretable, allowing for meaningful comparison and arithmetic operations.
Interpretation
The process of explaining or understanding the meaning of data, actions, or events.
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