This is the second part to another question I asked about and I tried doing it on my own but I am not so sure if it is correct or not Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving,domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currentlyexperiencing a balanced government budget.Real Interest RateNational SavingDomestic InvestmentNet Capital Outflow(Percent)(Billions of dollars)(Billions of dollars)(Billions of dollars)75020-1064530-540404355033060102257015 On the following graph, plot the relationship between the real interest rate and net capital outflow by using the green points (triangle symbol) to plotthe points from the initial data table. Then use the black point (X symbol) to indicate the level of net capital outflow at the equilibrium real interestrate you derived in the previous graph.Net Capital Outflow10NCO8Eqm. NCO-20-15-10-5101520NET CAPITAL OUTFLOW (Billions of dollars)Because of the relationship between net capital outflow and net exports, the level of net capital outflow at the equilibrium real interest rate impliesthat the economy is experiencingREAL INTEREST RATE4-

An open economy represents that economy that establishes contact with the rest of the world in terms…

Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently experiencing a balanced government budget. Real Interest Rate (Percent) 7 6 5 4 3 2 National Saving (Billions of dollars) 50 45 40 35 30 25 Domestic Investment (Billions of dollars) 20 30 40 50 60 70 Net Capital Outflow (Billions of dollars) -10 -5 0 5 10 15

Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently experiencing a balanced government budget. Real Interest Rate (Percent) 7 6 5 4 3 2 National Saving (Billions of dollars) 50 45 40 35 30 25 Domestic Investment (Billions of dollars) 20 30 40 50 60 70 Net Capital Outflow (Billions of dollars) -10 -5 0 5 10 15

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: c. How much total consumer surplus will each of them receive at a price of $32?

A: Last parts C and d are answered below:

Q: What is the value of Y if C = 200, a = 20, and b = 0.9?

A: Consumption is known as the expenditure incurred by the individuals on the purchase of goods and…

Q: i n 1 2 3 4 5 10% P/F 0.9091 0.8264 0.7513 06209 P/A 0.9091 2.4869 3.1699 3 7908 P/G 0 0.8264 2.3291…

A: Cumulative interest implies the total amount of interest that accrues over time on a principal sum…

Q: Explain what it means if the z-score of an exam score is -1.2.

A: z-score is a numerical value that tells the number of standard deviations a particular data value is…

Q: Question 28 Please follow this instruction: Only enter numbers in the given space. If you type in…

A: The unemployment rate is a key economic indicator that measures the percentage of the labor force…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: The presence of two singlet peaks suggests that there are two unique hydrogen environments in the…

Q: I am so confused, my computer stated that all three answers are incorrect. Can you assist so that I…

A: I'll try to put it simply the optimal pricing strategy. First we will find out optimal monopoly…

Q: The company that you manage has invested $5 million in developing a new product, but the development…

A: If it would cost $1 million to finish development and make the product, you should go ahead and do…

Q: In the United States of America the top 50% of households have about ________ per cent of all wealth…

A: Such facts give us an idea about the wealth inequality present in the country.

Q: Could you show the work for getting X = 6 and Y = (9-X)/2

A: The profits will be maximized when the derivative of the profit function with regard to an input…

Q: why is 1 the numerator over x + 2000 when you set it as u

A: The term "u" represents the variable x after it has been shifted by 2000 units to the right. This…

Q: A polling company reported that 53% of 2286 surveyed adults said that they play football. Complete…

A: Actual value can be derived from the percentage as follows Actual value = Value × Percentage of…

Q: if the child buys either chocolates or hard candies one piece at a time, what will be his first two…

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

Q: please explain how the first two answer are obtain

A: The counterfactual earnings are the wages they would have earned if they had a degree, as given in…

Q: What are the three specific desirable characteristics of an estimator?

A: Three specific desirable characteristics of an estimator are: Unbiasedness - An unbiased estimator…

Q: Daisy works for a candle manufacturer and has a great idea for a new product. She wants the candle…

A: The issue raised by Daisy's story has to do with product creation, pricing tactics, and possible…

Q: A polling company reported that 33% of 2286 surveyed adults said that they play football. Complete…

A: An Economic Survey refers to a snapshot of the significant economic changes that have usually taken…

Q: Carl is an insurance representative who attempts to sell home insurance to 140 customers per year.…

A: Step 1: Step 2: Step 3: Step 4:

Q: Although 23 states barred the self-service sale of gasoline in 1968, most removed the bans by the…

A: Total welfare is the total additional benefit or happiness enjoyed by producers and consumers who…

Q: Jack and Diane work at a bakery. Jack can make either five batches of cookies or two cakes per hour,…

A: Here we will use the concept of absolute advantage. The worker who have advantage in producing cakes…

Q: I need the answer to four, but it requires number 3.

A: 3. The MPC shows the change in consumption if disposable income changes. Marginal propensity to…

Q: I can not get 7.2, 7.8 or 8.3 when I do the calculations. How did you get them?

A: In this case, we have to discuss the quantity demanded in the predicted changes. That means quantity…

Question

This is the second part to another question I asked about and I tried doing it on my own but I am not so sure if it is correct or not

Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving,
domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently
experiencing a balanced government budget.
Real Interest Rate
National Saving
Domestic Investment
Net Capital Outflow
(Percent)
(Billions of dollars)
(Billions of dollars)
(Billions of dollars)
7
50
20
-10
6
45
30
-5
40
40
4
35
50
3
30
60
10
2
25
70
15

On the following graph, plot the relationship between the real interest rate and net capital outflow by using the green points (triangle symbol) to plot
the points from the initial data table. Then use the black point (X symbol) to indicate the level of net capital outflow at the equilibrium real interest
rate you derived in the previous graph.
Net Capital Outflow
10
NCO
8
Eqm. NCO
-20
-15
-10
-5
10
15
20
NET CAPITAL OUTFLOW (Billions of dollars)
Because of the relationship between net capital outflow and net exports, the level of net capital outflow at the equilibrium real interest rate implies
that the economy is experiencing
REAL INTEREST RATE
4-

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Company X is going to buy a total of 4 ads. They are going to advertise in the newspaper or on the radio. The more ads they buy the more customers they have based on the following schedule. Number of Ads Total new customers from newspaper ads Total new customers from radio ads 0 0 0 1 100 200 2 180 320 3 220 390 4 240 400 In this case, the best strategy is to buy newspaper ads and radio ads. Enter whole numbers.
f (x, y) = 3x² + y³ + 4xy² +8 Of(x,y) dr Of(x,y) dy What is the value of when x = 4 and y = 5? (Note: the answer may not be a whole number, so please round to the nearest hundredth) (Note: the numbers may change between questions, so read carefully)
I need the answer as soon as possible
How is MC calculated? 300 for the first MC is incorrect.
what is the terminology for this definition below: Year serving as point of comparison for other years
I just went to check my answers for question 4 and 5 on the homework. These questions are based off of the other questions 1-3 that I have already answered. I have answer 4 and 5 but not sure if they are right. I have attached all questions.
If the short run is 18 months does it follow that the long run is longer than 18 months?
You have been driving for about 3 hours early in the morning which of the following indicates that you might be fat