Confidential 5. In a small open economy, desired national saving, Sd = $10B + $100B X desired investment, I $15B - $100B output, Y= $50B government purchase, G = $10B world real interest rate, r = 3% (a) Find the economy's national saving, investment, current account surplus, net exports, desired consumption, and absorption. (b) Owing to a technological innovation, the country's desired investment rises by $2 billion at each level of the world real interest rate. Repeat part (a). Confidential. tial. Please do not distribute.

Confidential 5. In a small open economy, desired national saving, Sd = $10B + $100B X desired investment, I $15B - $100B output, Y= $50B government purchase, G = $10B world real interest rate, r = 3% (a) Find the economy's national saving, investment, current account surplus, net exports, desired consumption, and absorption. (b) Owing to a technological innovation, the country's desired investment rises by $2 billion at each level of the world real interest rate. Repeat part (a). Confidential. tial. Please do not distribute.

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Open-Economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 3QCMC

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