Answer Happy

. The Open Economy - Work It Out: Question 1 Consider an economy with the given equations. • Y=C+I+G+ NX • Y = 56000 • G - $1000 T= $1200 • C = $300 + 0.60(Y-T) . I = 1050 - 450 • NX 1585 - 15856 TET b. Suppose now that Grises to $1400. Solve for private saving, public saving, national saving, investment, the trade balance, and the equilibrium exchange rate. Private savings = $ Public savings = $
. = 1050 - 45 • NX = 1585 - 1585 b. Suppose now that Grises to $1400. Solve for private saving, public saving, national saving, investment, the trade balance, and the equilibrium exchange rate Private saving: = 5 Public savings | National savings is Investments Net exports (trade balance) $ Exchange rate =