In a large open economy, the home country's saving and investment equations are: sd=200+ 1400r" and Id = 300 – 400r" The foreign country's saving and investment equations are: sd= 50+ 600r" and Id=75- 100r" Calculate the current account balance in the foreign country.

Q: Y = C + I + G + NX Y=$6000 G=$1000 T=$1150 C=$200+0.75(Y−T) I=1100−50r NX=913−913ε…

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Q: QUESTION 10 In a large open economy, the home country's saving and investment equations are: sd=200+…

A: Home Country S = 200 + 1400r I = 300 - 400r Foreign Country S = 50 + 600r I = 75 - 100r

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