Question 23Suppose the world consists of two countries, ABC and XYZ, only. The (autarky) equilibrium interest rate in ABC and XYZare 15% and 12% respectively. The market for loanable funds can be described by the following equations:Demand for loanable fundsDFABC = 300 – 7İABCDFXYZ = 180 – 6ixyZSupply of loanable fundsSFB = 30 + 3İABCCountryАВСXYZSFc = 60 + 14ixYZ%3DNote: Interest rates are expressed in percentage points (i.e., if i = 5, then i = 5%).(inflows orWhen the international flows of capital are allowed, XYZ will experience net capital(enter a number here and keep your answer to theoutflows) and the size of XYZ's trade balance isnearest integer)

When a nation has more of exports/outflows than it has imports/inflows, then the nation is in a…

Suppose the world consists of two countries, ABC and XYZ, only. The (autarky) equilibrium interest rate in ABC and XYZ are 15% and 12% respectively. The market for loanable funds can be described by the following equations: Demand for loanable funds DFABC = 300 – 7/ABC DFXYZ = 180 – 6lxyz Country Supply of loanable funds ABC SFB 30 + 31ABC XYZ SFC - 60 + 141XYZ Note: Interest rates are expressed in percentage points (i.e., it i = 5, then i- 5%). (inflows or When the international flows of capital are allowed, XYZ will experience net capital (enter a number here and keep your answer to the outflows) and the size of XYZ's trade balance is nearest integer)

Suppose the world consists of two countries, ABC and XYZ, only. The (autarky) equilibrium interest rate in ABC and XYZ are 15% and 12% respectively. The market for loanable funds can be described by the following equations: Demand for loanable funds DFABC = 300 – 7/ABC DFXYZ = 180 – 6lxyz Country Supply of loanable funds ABC SFB 30 + 31ABC XYZ SFC - 60 + 141XYZ Note: Interest rates are expressed in percentage points (i.e., it i = 5, then i- 5%). (inflows or When the international flows of capital are allowed, XYZ will experience net capital (enter a number here and keep your answer to the outflows) and the size of XYZ's trade balance is nearest integer)

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: An Introduction To Basic Macroeconomic Markets

Section: Chapter Questions

Problem 6CQ

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