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Consider Given Figure.

What is the size of each of the following? (Each answer should be a number.)

a. World product without international lending.

b. World product with free international lending.

c. World product with Japan's tax of 2 percent on its foreign lending. What does the difference between your answers to parts a and b tell us? What does the difference between your answers to parts b and c tell us?

2176_Figure5.jpg

Financial Management, Finance

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