In a small open economy, Desired national saving: 5= $20 billion+ ($400 billion). Desired investment: $40 billion ($400

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In A Small Open Economy Desired National Saving 5 20 Billion 400 Billion Desired Investment 40 Billion 400 1 (33.96 KiB) Viewed 22 times

In a small open economy, Desired national saving: 5= $20 billion+ ($400 billion). Desired investment: $40 billion ($400 billion)**; Output: Y= $200 billion; Government purchases: G = $40 billion; World real interest rate: /* = 8%. a. Find the values of the following variables: (Round all answers to one decimal place. All values in billions of dollars.) National saving = $ Investment = $ Net exports = $ Current account balance = $ Consumption S Absorption = $ b. Owing to a technological innovation that increases future productivity, the country's desired investment rises by $2 billion at each level of the world real interest rate. Find the new values of the variables: (Round all answers to one decimal place. All values in billions of dollars.) National saving = $ Investment = $ Net exports = $ Absorption = $