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  • Card 6 / 8:
    Explain briefly whether each of the following would be more likely to lead to a higher level of trade for an economy, or a greater imbalance of trade for an economy.

    Living in an especially large countryHaving a domestic investment rate much higher than the domestic savings rateHaving many other large economies geographically nearbyHaving an especially large budget deficitHaving countries with a tradition of strong protectionist legislation shutting out imports

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Source:  OpenStax, Principles of macroeconomics. OpenStax CNX. Jan 09, 2015 Download for free at http://legacy.cnx.org/content/col11750/1.2
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