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Describe the term- higher national income and interest rate
This causes country B to adjust to point B with both a higher national income and interest rate. At this point the foreign rate of interest is above the world rate of interest. Country B will, therefore, experience an incipient balance of payments surplus. At point B neither country has balance of payments equilibrium. This disequilibrium will induce further adjustment and spillover effects, the nature of which depends on the exchange rate regime between the two countries.
Throughout this course, you have analyzed and discussed case studies and issues on key ethical issues in information technology. Now it is time to consider how these theories apply
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