- The Open Economy Work It Out Question 1 Consider An Economy With The Given Equations Y C I G Nx Y 5000 G 1 (27.6 KiB) Viewed 13 times
- The Open Economy Work It Out Question 1 Consider An Economy With The Given Equations Y C I G Nx Y 5000 G 2 (28.93 KiB) Viewed 13 times
The Open Economy - Work It Out: Question 1 Consider an economy with the given equations. • Y=C+I+G+ NX • Y = $5000 • G = $1000 • T = $1200 • C= $300 +0.65(YT) I = 1050 - 45r • NX = 995 - 995€ r = r* = 7 • b. Suppose now that G rises to $1400. Solve for private saving, public saving, national saving, investment, the trade balance, and the equilibrium exchange rate. Private savings = $ National savings = $ Net exports (trade balance) = $ Public savings = $ Investment = $ Exchange rate =
The Open Economy - Work It Out: Question 1 Consider an economy with the given equations. • Y=C+I+G+ NX • Y = $5000 G = $1000 • • T = $1200 • C = $300 +0.65(Y-T) • I = 1050 - 45r • NX = 995 - 995€ • r = r* = 7 c. Suppose that the world interest rate rises from 7 to 14 percent. Solve for private saving, public saving, national saving, investment, the trade balance, and the equilibrium exchange rate. Assume that G is equal to 1400 from the last part of this problem. Private savings = $ National savings = $ Net exports (trade balance) = $ Public savings = $ Investment = $ Exchange rate=