Macroeconomics (9th Global Edition)
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 7AP
To determine

To Analyze:The effect of productivity shock.

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Explain, with the aid of a graph, the effect on the rand/dollar exchange rate and the equilibrium quantity of dollars if there is a decrease in imports from the USA to South Africa.  Comment on the effect of this on the current account balance as well as on domestic prices.
What are the effects on the world equilibrium interest rate, national saving, investment, and the current account balance in each country if home expected future marginal productivity of capital increases? What are the effects on the world equilibrium interest rate, national saving, investment, and the current account balance in each country if foreign country experiences a temporary adverse supply shock? Just need the graphs, and the effect on each variable
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