Macroeconomics (9th Global Edition)
9th Edition
ISBN: 9780134141534
Author: Andrew B. Abel, Ben Bernanke
Publisher: Pearson Global Edition
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Chapter 5, Problem 4NP
a)
To determine
To evaluate the equilibrium interest rate in the international capital market and the equilibrium values of national saving, consumption, investment, and current account balance in each country.
b)
To determine
To evaluate the equilibrium interest rate in the international capital market and the equilibrium values of national saving, consumption, investment, and current account balance in each country assuming that in the home country government purchases by 50 to 325 and taxes also increase by 50 to keep the deficit from increasing.
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Chapter 5 Solutions
Macroeconomics (9th Global Edition)
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