Promoting consumption, Suppose that the developing

Promoting consumption

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Reference no: EM131007594

Suppose that the developing countries like China and India start promoting consumption, and as a result there is sudden decline in world savings.

a. What happens to the investment in a small open economy like Singapore?

b. What happens to the trade balance of Singapore?

c. What happens to the real exchange rate of Singapore?

Reference no: EM131007594

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