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Explain and Show Graphically the Effect of a Decrease in U.S.budget

question 219

Essay

Explain and show graphically the effect of a decrease in U.S.budget deficits that decrease U.S.interest rates on the demand and supply of U.S.dollars for euros.

Identify the effects of changes in the real interest rate and real exchange rate on net capital outflow.
Analyze the impact of shifts in the demand for loanable funds on the real interest rate and the equilibrium quantity of loanable funds.
Grasp the concept of national saving and its representation in different economic models.
Explain the equilibrium process in the open-economy macroeconomic model, including the effects of government policies on budget deficits and surpluses.

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