Consider the following open-economy version of the IS Curve: Y₁ = a - b (R₁-F) + bnz (R; -F)-bnz (Re-F). where a = a +äg +ãi + anz-1. There are no demand shocks and R = R; =f. Moreover, än 0. In response to a public health emergency central banks around the world are lowering real interest- rates by 1 percentage point. If b,and b, calculate Y, (in percent).

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Question 21
Consider the following open-economy version of the IS Curve:
Y, = a - b,(R- F) + Bnz (R; - F) - Bna (R-F).
where ā = äe +āg + ā, +ānz - 1.
There are no demand shocks and R = R; = F. Moreover, ānr
0.
%3D
!!
In response to a public health emergency central banks around the world are lowering real interest
rates by 1 percentage point.
If b, = and bna = , calculate Y, (in percent).
%3!
Question 22
NX,
equals
Using the same numbers as in the previous question, you also know that
percent.
Transcribed Image Text:Question 21 Consider the following open-economy version of the IS Curve: Y, = a - b,(R- F) + Bnz (R; - F) - Bna (R-F). where ā = äe +āg + ā, +ānz - 1. There are no demand shocks and R = R; = F. Moreover, ānr 0. %3D !! In response to a public health emergency central banks around the world are lowering real interest rates by 1 percentage point. If b, = and bna = , calculate Y, (in percent). %3! Question 22 NX, equals Using the same numbers as in the previous question, you also know that percent.
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