Domestic economy: Consider two open economies in which the real exchange ate is fixed and equal to one. Consumption, investment, government spending, axes, imports and exports are given by equations on the right for each economy. /ariables with *" denote values for the foreign economy. C = 11 + 0.7 (Y – T) | = 12 Solve for equilibrium output in the domestic economy Y, and foreign economy Y". Enter your answer as a whole number.) G = 10 v= 89. T = 9 IM = 0.3Y *= 89 . EX = 0.3Y* Vhat is the multiplier for each country? Foreign economy: For the following numerical responses, round your answer to one decimal place.) C* = 11 + 0.7 (Y* -T") "he multiplier for the domestic country is I* = 12 "he multiplier for the foreign country is G* = 10 T* = 9 IM* = 0.3Y* EX* = 0.3Y

Domestic economy: Consider two open economies in which the real exchange ate is fixed and equal to one. Consumption, investment, government spending, axes, imports and exports are given by equations on the right for each economy. /ariables with " denote values for the foreign economy. C = 11 + 0.7 (Y – T) | = 12 Solve for equilibrium output in the domestic economy Y, and foreign economy Y". Enter your answer as a whole number.) G = 10 v= 89. T = 9 IM = 0.3Y = 89 . EX = 0.3Y* Vhat is the multiplier for each country? Foreign economy: For the following numerical responses, round your answer to one decimal place.) C* = 11 + 0.7 (Y* -T") "he multiplier for the domestic country is I* = 12 "he multiplier for the foreign country is G* = 10 T* = 9 IM* = 0.3Y* EX* = 0.3Y

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter4: The Aggregate Economy

Section: Chapter Questions

Problem 5E

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