Confidential 5. In a small open economy, desired national saving, Sd = $10B + $100B X desired investment, I $15B - $100B output, Y= $50B government purchase, G = $10B world real interest rate, r = 3% (a) Find the economy's national saving, investment, current account surplus, net exports, desired consumption, and absorption. (b) Owing to a technological innovation, the country's desired investment rises by $2 billion at each level of the world real interest rate. Repeat part (a). Confidential. tial. Please do not distribute.
Confidential 5. In a small open economy, desired national saving, Sd = $10B + $100B X desired investment, I $15B - $100B output, Y= $50B government purchase, G = $10B world real interest rate, r = 3% (a) Find the economy's national saving, investment, current account surplus, net exports, desired consumption, and absorption. (b) Owing to a technological innovation, the country's desired investment rises by $2 billion at each level of the world real interest rate. Repeat part (a). Confidential. tial. Please do not distribute.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: A Macroeconomic Theory Of The Open Economy
Section: Chapter Questions
Problem 1CQQ
Related questions
Question
![5. In a small open economy,
distribute
Confidential
Pelo neribo
do not distrib
desired national saving, Sd
desired investment,
output, Y= $50B
government purchase, G = $10B
world real interest rate, r = 3%
(a) Find the economy's national saving, investment, current account surplus, net
exports, desired consumption, and absorption.
(b) Owing to a
$2 billion
technological innovation, the country's desired investment rises by
at each level of the world real interest rate. Repeat part (a).
a
$10B + $100B x
$15B-$100B
pw
stifidential. Please do nordist
Pw
tial. Please do not distribute.
We do not](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50660b4e-3d70-4ad2-9b5e-131ed257d085%2F202b19a8-9387-48d2-948e-9b85e5ca8e9c%2Frai8tig_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5. In a small open economy,
distribute
Confidential
Pelo neribo
do not distrib
desired national saving, Sd
desired investment,
output, Y= $50B
government purchase, G = $10B
world real interest rate, r = 3%
(a) Find the economy's national saving, investment, current account surplus, net
exports, desired consumption, and absorption.
(b) Owing to a
$2 billion
technological innovation, the country's desired investment rises by
at each level of the world real interest rate. Repeat part (a).
a
$10B + $100B x
$15B-$100B
pw
stifidential. Please do nordist
Pw
tial. Please do not distribute.
We do not
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