Homework Help is Here – Start Your Trial Now!
Business
Economics
In the short run, Swedeway's output and real exchange rate are now given by Y = 493.33; e = 12.4 %3D Y = 495.00; e = 26.6 Y = 496.67; e = 7.83. Y = 496.00; e = 12.1

In the short run, Swedeway's output and real exchange rate are now given by Y = 493.33; e = 12.4 %3D Y = 495.00; e = 26.6 Y = 496.67; e = 7.83. Y = 496.00; e = 12.1

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
6
z=5 Suppose desired consumption C", investment, 1", net exports, NX, and the demand for monetary assets, M", for the small open economy of Swedeway can be represented as Cd = 100 + 0.6Y %3D Id = 80 – 400r Md = 0.5Y- 0.3(r + n°) + z NX = 200 – 0.3Y – 10e %3D where Y denotes GDP, r'denotes the domestic real interest rate,eis the real exchange rate andPis the domestic price level. Swedeway operates a flexible nominal exchange rate regime. Government spending is given byG: expected inflation is T° rFor = 0. 03and the foreign price level isPFor = 1. The full employment level 100, the money supply isM = 100and 0.02. The foreign real interest rate is of output is Y 500. In the short run, Swedeway's output and real exchange rate are now given by Y = 493.33; e = = 12.4 Y = 495.00; e = 26.6 Y = 496.67; e = 7.83. Y = 496.00; e = 12.1
Transcribed Image Text:z=5 Suppose desired consumption C", investment, 1", net exports, NX, and the demand for monetary assets, M", for the small open economy of Swedeway can be represented as Cd = 100 + 0.6Y %3D Id = 80 – 400r Md = 0.5Y- 0.3(r + n°) + z NX = 200 – 0.3Y – 10e %3D where Y denotes GDP, r'denotes the domestic real interest rate,eis the real exchange rate andPis the domestic price level. Swedeway operates a flexible nominal exchange rate regime. Government spending is given byG: expected inflation is T° rFor = 0. 03and the foreign price level isPFor = 1. The full employment level 100, the money supply isM = 100and 0.02. The foreign real interest rate is of output is Y 500. In the short run, Swedeway's output and real exchange rate are now given by Y = 493.33; e = = 12.4 Y = 495.00; e = 26.6 Y = 496.67; e = 7.83. Y = 496.00; e = 12.1
What is the change in net exports, ANX, in the short run? ANX = -2,50 %3D ANX = –2.67 %3D ANX = –1.60 ANX = –1,67 In the new GE, Swedeway's domestic price level and real exchange rate are given by P = 0.490; e = 26.0 P = 0.392; e = 11.8 P = 0.649; e = 12.0 P = 0.395; e = 7.60 In the new GE, the nominal exchange rate, enom, is given by епот — 53.0 enom = = 19.3 епот — 30.1 е пот = 18.5
Transcribed Image Text:What is the change in net exports, ANX, in the short run? ANX = -2,50 %3D ANX = –2.67 %3D ANX = –1.60 ANX = –1,67 In the new GE, Swedeway's domestic price level and real exchange rate are given by P = 0.490; e = 26.0 P = 0.392; e = 11.8 P = 0.649; e = 12.0 P = 0.395; e = 7.60 In the new GE, the nominal exchange rate, enom, is given by епот — 53.0 enom = = 19.3 епот — 30.1 е пот = 18.5
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Nash Equilibrium
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.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS