Imports are a leakage in the sense that
a. the international financial system is unstable.
b. consumers buy foreign output of goods and services.
c. foreigners earn less than U.S. workers.
d. a trade deficit increases aggregate demand.
b
Economics
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What will be an ideal response?
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If an economist is talking about international institutions, governments, and NGOs and the policies that oversee international markets, they are talking about
A) international financial architecture. B) the role of the IMF. C) international exchange rate regimes. D) foreign direct investment.
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