7 QUESTION 9As a result of entering the world economy, Neverland experiences economic boom and its GDP goes up to y – 13250: The functions that describe consumption andinvestment are still the same: cd(r) = 5000 – 1000r +0.25Y and Id(r) = 500 – 1800r +0.2Y, The government wants to take advantage of growth and increasesits expenditures to: G- 1000: What is Neverland's current account balance?Note: Type in your answer approximated to two decimal points, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were enteredincorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard will automatically delete itand you should not do anything about it.

In the question above, it is given that : Y = 13250 C = 5000 - 1000 r + 0.25 Y = 5000 - 1000 r +…

As a result of entering the world economy, Neverland experiences economic boom and its GDP goes up to y= 13250. The functions that describe consumption and investment are still the same: Cd(,) = 5000 – 1000r+0.25Y and 1d (r) = 500 – 1800r + 0.2Y. The government wants to take advantage of growth and increases its expenditures to: G- 190o. What is Neverland's current account balance?

As a result of entering the world economy, Neverland experiences economic boom and its GDP goes up to y= 13250. The functions that describe consumption and investment are still the same: Cd(,) = 5000 – 1000r+0.25Y and 1d (r) = 500 – 1800r + 0.2Y. The government wants to take advantage of growth and increases its expenditures to: G- 190o. What is Neverland's current account balance?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 46P: Imagine that the economy of Germany finds itself in the following situation: the government budget...

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