3 In a small open economy,Desired national saving: 5= $20 billion+ ($400 billion).Desired investment:$40 billion ($400 billion)**;Output: Y= $200 billion;Government purchases: G = $40 billion;World real interest rate: /* = 8%.a. Find the values of the following variables: (Round all answers to one decimal place. All values in billions of dollars.)National saving = $Investment = $Net exports = $Current account balance = $Consumption SAbsorption = $b. Owing to a technological innovation that increases future productivity, the country's desired investment rises by $2 billion at each level of the world real interest rate. Find the new values of the variables: (Round all answers to one decimalplace. All values in billions of dollars.)National saving = $Investment = $Net exports = $Absorption = $

The measure that depicts final value of goods and services within an economy during given time span…

Desired national saving: s= $20 billion+ ($400 billion) Desired investment: /"$40 billion ($400 billion)x": Output: Y $200 billion; Government purchases: G= $40 billion; World real interest rate: 8%. a. Find the values of the following variables: (Round) answers to one decimal place. All values in billions of dollars.) National saving = S Investment = $ Net exports - S Current account balance = $ Consumption = S Absorption $ b. Owing to a technological innovation that increases future productivity, the country's desired investment rises by $2 billion at each level of the world real interest rate. Find the new values of the variables: (Round all answers to one decimal place. All values in billions of dollars.) National saving = $ Investment = $ Net exports = $ Absorption = $

Desired national saving: s= $20 billion+ ($400 billion) Desired investment: /"$40 billion ($400 billion)x": Output: Y $200 billion; Government purchases: G= $40 billion; World real interest rate: 8%. a. Find the values of the following variables: (Round) answers to one decimal place. All values in billions of dollars.) National saving = S Investment = $ Net exports - S Current account balance = $ Consumption = S Absorption $ b. Owing to a technological innovation that increases future productivity, the country's desired investment rises by $2 billion at each level of the world real interest rate. Find the new values of the variables: (Round all answers to one decimal place. All values in billions of dollars.) National saving = $ Investment = $ Net exports = $ Absorption = $

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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