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Business, 09.08.2019 23:20 NetherisIsTheQueen

An open economy interacts with the rest of the world through its involvement in world markets for goods and services and world financial markets. although it can often result in an imbalance in these markets, the following identity must remain true: net capital outflow = net exportsin other words, if a transaction directly affects the left side of this equation, then it must also affect the right side. the following problem will you understand why this identity must hold.(a) suppose you are the purchasing manager for a large chain of restaurants in the united states, and you need to make your semi-annual purchase of tea. you pay $1 million for a shipment of tea from an indian tea producer. determine the effects of this transaction on exports, imports, and net exports in the u. s. economy, and enter your results in the following table. if the direction of change is "no change," enter "0" in the magnitude of change column. (hint: the magnitude of change should always be positive, regardless of the direction of change.) direction of change magnitude of changeexportimportnet export

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