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  3. label each of the following statements as true false or...

Question: label each of the following statements as true false or...

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1. Label each of the following statements as true, false or uncertain. Explain your choice. a) Chile is a copper exporter. A short-lived increase in the price of copper worsens Chiles current account (makes Chile run a deficit). b) In an event of a sudden stop in capital flows, the capital outflow causes a real exchange rate depreciation. c) The interest rate spike that triggers a sudden stop is always caused by weak macroeconomic fundamentals at home. d) Twin deficits (fiscal and current account deficits) only take place in advanced economies. e) Everything else equal, in an economy where consumers are subject to borrowing constraints, a fiscal deficit caused by tax cuts will have a bigger effect on the current account.

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