A small open economy is described by the following equations: C = 300 + 0.8(Y - T) | = 220 - 40r NX = 300 - 60 e G = 200 T = 150 M = 1500 P = 3 r* = 5 L= Y - 60r If G increases by 30 to 230 Assuming fixed exchange rate: Equilibrium net exports is = %3D

A small open economy is described by the following equations: C = 300 + 0.8(Y - T) | = 220 - 40r NX = 300 - 60 e G = 200 T = 150 M = 1500 P = 3 r* = 5 L= Y - 60r If G increases by 30 to 230 Assuming fixed exchange rate: Equilibrium net exports is = %3D

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: International Finance

Section: Chapter Questions

Problem 10QP

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Question

A small open economy is described by the following equations:
C = 300 + 0.8(Y – T)
| = 220 - 40r
NX = 300 - 60 e
G = 200
T = 150
M = 1500
P = 3
r* = 5
L = Y - 60r
If G increases by 30 to 230
Assuming fixed exchange rate:
Equilibrium net exports is
%3D

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