There are two large open economy. Current account balance of the home country is given by -15+30r", where rw is the world interest rate. Current account balance of the foreign country is given by 6+15rw. The equilibrium level of home current account balance is -10.5 -21 O-19.5

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 6SCQ: The GDP for the United States is 18,036 billion and its current account balance is 484 billion. What...
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There are two large open economy. Current account balance of the home country is given by
-15+30r", where rw is the world interest rate. Current account balance of the foreign country is
given by 6+15rw. The equilibrium level of home current account balance is
-10.5
-21
-19.5
Transcribed Image Text:There are two large open economy. Current account balance of the home country is given by -15+30r", where rw is the world interest rate. Current account balance of the foreign country is given by 6+15rw. The equilibrium level of home current account balance is -10.5 -21 -19.5
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