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An economy has GDP of 10,000; consumption of 6,000; government purchases of 1,000 and investment of...

An economy has GDP of 10,000; consumption of 6,000; government purchases of 1,000 and investment of 2,500.

Net Exports = _______________; and Net Capital Outflow = _____________

What is the effect of an increase in the government purchases on

Net Exports (Increase or Decrease) and on Net Capital Outflow (Increase or Decrease)

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