Depreciation of currency and contractionary fiscal policy

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Reference no: EM13829943

Consider the equation: NX = S + (T-G) - I, afterwards, determine what happens to: Trade balance, public saving, private saving, and investment with respect to the following cases:

1. Government Spending Increases

2. Foreign Output Increases

3. Simultaneous depreciation of the currency and contractionary fiscal policy

Reference no: EM13829943

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