Consider the following open economy SI model set up Y = 18000 C = 300 + 0.8(Y − 2500) I = 3500 − 400(r) r = r∗ = 5 G = 3000 T = 2500 NX = 5000 − 30(e) (a) Compute National Savings. (b) Compute Net Exports, NX and exchange rate, e.
Consider the following open economy SI model set up Y = 18000 C = 300 + 0.8(Y − 2500) I = 3500 − 400(r) r = r∗ = 5 G = 3000 T = 2500 NX = 5000 − 30(e) (a) Compute National Savings. (b) Compute Net Exports, NX and exchange rate, e.
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 8SCQ: State whether each of the following events Involves a financial flow to the U.S. economy or away...
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Question
Consider the following open economy SI
model set up
Y = 18000
C = 300 + 0.8(Y − 2500)
I = 3500 − 400(r)
r = r∗ = 5
G = 3000
T = 2500
NX = 5000 − 30(e)
(a) Compute National Savings.
(b) Compute Net Exports, NX and exchange
rate, e.
(d) Compute the impact on e, if both G
increase by 500.
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