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A recession in the United States is likely to raise the growth of real GDP...

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Finance

  1. A recession in the United States is likely to raise the growth of real GDP in Europe. Do you agree or disagree? Why?

2. Explain the effect of each of the following on the LM curve:

a. The countrys central bank decreases the money supply.

b. The countrys interest rate increases.

3. Explain the effect of each of the following on the IS curve:

a. Government spending decreases.

b. Foreign demand for the countrys exports increases.

c. The countrys interest rate increases.

4. Explain the effect of each of the following on the FE curve:

a. Foreign demand for the countrys exports increases.

b. The foreign interest rate increases.

c. The countrys interest rate increases.

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