Solved: Good explanation of germany trade, Macroeconomics

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Good explanation of germany trade

Question:

Suppose that you test the Linder hypothesis by comparing Germany's absolute difference in per capita income from each of its trading partners with the size of Germany's total trade with each respective partner. You find a strongly negative correlation. Do you thus conclude that the Linder hypothesis must necessarily offer a good explanation of Germany's trade? Why or why not?

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Macroeconomics: Good explanation of germany trade

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