Assume that indonesia is a small open economy explain how a, Ask an Expert

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Assume that Indonesia is a small open economy. Explain how a decrease in the level of taxes (T ∗ ) in the rest of the world affects the world interest rate, the Indonesian interest rate, level of investment, net exports and net capital outflows in Indonesia. Support your answer with a graph of the rest of the world loanable funds market and a graph of the Indonesian loanable funds market.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91669845

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