24. Consider an open economy, where the goods market is in equilibrium when the domestic output equals the domestic and foreign demand for domestic goods. a. Variable Behavioral equations ($) Exports 0.3Y*-200e Imports 0.1Y+300e Real exchange rate 0.45 Total output 1,000 Foreign output 500 Savings 9,44Yd+300 Taxes 0.25Y Government spending 400 Investment 1,000 Net income from abroad 0.1NX Net transfers from abroad 100 b. If there is an improvement in the government budget balance by 4% the country will witness a () and this increased current account balance would be Consider an open economy, where the goods market is in equilibrium when the domestic output equals the domesticand foreign demand for domestic goods.VariableExportsImportsReal exchange rateTotal outputForeign outputSavingsTaxesGovernment spendingInvestmentNet income from abroadNet transfers from abroadBehavioral equations ($)*0.35Y - 250€0.11Y+ 400€two decimal places.)0.551,5001,0000.55Y+3500.3Y8001,2000.2NX200If there is an improvement in the government budget balance by 5%, the country will witness aand this increased current account balance would be $(Round your answer to

When domestic output matches domestic and international demand for domestic goods in an open economy…

Answered: 24. Consider an open economy, where the…

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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24. Consider an open economy, where the goods market is in equilibrium when the domestic output equals the domestic and foreign demand for domestic goods. a. Variable Behavioral equations ($) Exports 0.3Y*-200e Imports 0.1Y+300e Real exchange rate 0.45 Total output 1,000 Foreign output 500 Savings 9,44Yd+300 Taxes 0.25Y Government spending 400 Investment 1,000 Net income from abroad 0.1NX Net transfers from abroad 100 b. If there is an improvement in the government budget balance by 4% the country will witness a () and this increased current account balance would be

Consider an open economy, where the goods market is in equilibrium when the domestic output equals the domestic
and foreign demand for domestic goods.
Variable
Exports
Imports
Real exchange rate
Total output
Foreign output
Savings
Taxes
Government spending
Investment
Net income from abroad
Net transfers from abroad
Behavioral equations ($)
*
0.35Y - 250€
0.11Y+ 400€
two decimal places.)
0.55
1,500
1,000
0.55Y+350
0.3Y
800
1,200
0.2NX
200
If there is an improvement in the government budget balance by 5%, the country will witness a
and this increased current account balance would be $
(Round your answer to

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