3. Analyze the following situations graphically in a S-I model for an open economy set-upa. Impact of an exogenous increase in world sav- b. Impact of increased business uncertaintyings

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Impact of an exogenous increase in world ings a. sav- b. Impact of increased business uncertainty

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

3. Analyze the following situations graphically in a S-I model for an open economy set-up
a. Impact of an exogenous increase in world sav- b. Impact of increased business uncertainty
ings

Expert Solution

Step 1

S-I shows market for savings and investment. Equilibrium in this market occurs where savings is equal to investment.

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