Now consider a small open economy, assuming domestic output is held constant and the country initially has a current account deficit. Explain the impact of an increase in government spending on the current account using both words and graphs.

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Q: P&G 1.10 1.20 1.30 1.10 -226 -215 - 204 1.20 - 106 - 89 -73 1.30 -56 -37 - 19 1.40 -44 -25 -6 1.50 -…

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A: Utility Function shows how the utility varies when the combinations of the two goods change. It is…

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A: Answer to  question 1 is:

Q: 1.10 1.20 - 226 -215 - 106 - 89 -56 -37 -44 -25 - 52 -32 -70 -51 - 93 -76 - 118 - 102 A. quantities.…

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A: Given,

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A: Resources are the factor of production which uses as input in the production process.

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A: Simple interest is a speedy and simple strategy for working out the interest charge on a loan.

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Q: Henry Ford is famous for utilizing the assembly line to produce cars. He also paid is workers a wage…

A: Answer to the question is as follows: