Answer to Question #67796 in Macroeconomics for Joe

Question #67796
Briefly describe what would happen to the current accounts if a small open economy experiences an increase in the expected future marginal product of capital?
1
Expert's answer
2017-04-27T10:15:08-0400
Increase in the expected future marginal product of capital lead to increase in investment. As a result, current accounts will decrease.

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