Suppose that an economy starts with a net foreign asset to GDP ratio NFA/Y equal to -0.3. After one year, the ratio of net exports to output has been 0. What will the NFA/Y ratio become after this year due to this effect? Suppose that an economy starts with a net foreign asset to GDP ratio NFA/Y equal to -30%. After one year, the real interest rate has been -10%. What will the NFA/Y ratio become after this year due to this effect?

Suppose that an economy starts with a net foreign asset to GDP ratio NFA/Y equal to -0.3. After one year, the ratio of net exports to output has been 0. What will the NFA/Y ratio become after this year due to this effect? Suppose that an economy starts with a net foreign asset to GDP ratio NFA/Y equal to -30%. After one year, the real interest rate has been -10%. What will the NFA/Y ratio become after this year due to this effect?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Savings,investment And The Financial System

Section: Chapter Questions

Problem 5PA

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