“The impacts of a (a) budget deficit and (b) capital flight on the equilibrium in the open economy are identical.” Do you agree or disagree with this statement. Discuss, with the aid of diagrams, the similarities and differences of the impacts.

“The impacts of a (a) budget deficit and (b) capital flight on the equilibrium in the open economy are identical.” Do you agree or disagree with this statement. Discuss, with the aid of diagrams, the similarities and differences of the impacts.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter20: The Global Economy

Section: Chapter Questions

Problem 16AA

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