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Question 5 a) What effect do protectionist policies have on the… Question 5 a) What effect do protectionist policies have on the trade deficit?b) Suppose the U.S. government instituted a “Buy American” campaign, in order to encourage spending on domestic goods. What effect would this have on the U.S. trade balance?c) If a county becomes less likely to default on its bonds, what happens to that country’s interest rate and exchange rate? Explain. Business Finance ECON 1102

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