Domestic demand is a function of
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The domestic demand for goods is an increasing function of income. The demand for domestic goods is obtained by subtracting the value of imports from domestic demand, and then adding exports. The trade balance is a decreasing function of output.)
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The domestic demand for goods is an increasing function of income. The demand for domestic goods is obtained by subtracting the value of imports from domestic demand, and then adding exports. The trade balance is a decreasing function of output.
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