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Business, 17.06.2021 19:50 aaronpmoore1010

Use the model of the small open economy to predict what would happen to the trade balance, the real exchange rate, and the nominal exchange rate in response to a fall in the confidence of consumers about the future that induces them to spend less and save more. a. A fall in consumer confidence about the future induces consumers to spend less and save more. b. A tax reform increases the incentive for businesses to build new factories. c. The introduction of a stylish line of Toyotas makes some consumers prefer foreign cars over domestic cars. d. The central bank doubles the money supply. e. New regulations restricting the use of credit cards increase the demand for money.

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