Explain the effects of the given shock on the us economy, Macroeconomics

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Explain the effects of the given shock on the us economy

Problem

The unwinding of the U.S. trade deficit: Suppose some shock occurs to the U.S. economy that makes foreign investors more reluctant to hold U.S. assets. Use the AS/AD framework to explain the effects of this shock on the U.S. economy.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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