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In: Economics

Suppose a country finalizes its arrangement to leave a political arrangement recently. The exit from this...

Suppose a country finalizes its arrangement to leave a political arrangement recently. The exit from this previous political arrangement has permanently eliminated uncertainty in undertaking investment in the economy, which is welcomed by investors around the world. This elimination of risk would lead to an increase in output but has no impact on the country’s balance of payments.” True/False/Uncertain, explain and support your answer by ONE DD-AA diagram (only the first diagram will be graded).

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