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Protect exporters in order to stimulate

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Reference no: EM131037742

1. Are trade deficits necessarily a bad thing? Why or why not?

2. Suppose the government spends into a deficit. Show how a trade deficit may follow, and explain why this happens.

3. Suppose a politician claims that "Since +I+G+NX, we should protect exporters in order to stimulate GDP". Is she correct? Why or why not?

Reference no: EM131037742

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