As a result of the trade war, the US increases its trade barriers. a. How would only this development affect the IS curve? b. Now assume that other countries respond by increasing their trade barriers. Explain how would these developments affect the IS curve?
As a result of the trade war, the US increases its trade barriers. a. How would only this development affect the IS curve? b. Now assume that other countries respond by increasing their trade barriers. Explain how would these developments affect the IS curve?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 39CTQ: Occasionally, a government official will argue that a country should strive for both a trade surplus...
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As a result of the trade war, the US increases its trade barriers.
a. How would only this development affect the IS curve?
b. Now assume that other countries respond by increasing their trade barriers. Explain how would these developments affect the IS curve?
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