In a small open economy, NSd = $10 billion + $100 billionxE. Id = $15 billion - $100 billionXrw Y = S45 billion G = $8 billion Kix = .05 Find the country's national saving, investment spending, desired consumption and absorption. Then calculate current account balance using both intertemporal model and absorption approach.

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In a small open economy,
NSd = $10 billion + $100 billionxE.
Id = $15 billion - $100 billionXrw
Y = S45 billion
G = $8 billion
Kix = .05
Find the country's national saving, investment spending, desired consumption and
absorption. Then calculate current account balance using both intertemporal model and
absorption approach.
Transcribed Image Text:In a small open economy, NSd = $10 billion + $100 billionxE. Id = $15 billion - $100 billionXrw Y = S45 billion G = $8 billion Kix = .05 Find the country's national saving, investment spending, desired consumption and absorption. Then calculate current account balance using both intertemporal model and absorption approach.
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