Effects on domestic swedish production

Reference no: EM133439575

Question 1: Suppose you are studying Sweden, i.e. a small, open economy with a floating exchange rate.

Question 2: Now suppose that there is a boom in Germany (a country that is a major trading partner with Sweden).

Question 3: Explain what effects this theoretically has on the Swedish economy. You must touch on effects on domestic Swedish production, net exports, investments and the state's budget balance.

Reference no: EM133439575

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