nagine that Neverland decided to re-establish links to the rest of the world and is now a small open economy. Its economy can be described by the following onsumption and investment curves: cd(,)= 5000 – 1000r + 0.25Y and 1d(r) = 500 – 1800r+0.2Y: Its output is y= 13000 and government spending is == 1800- The world interest rate is 5%. Which of the following statements are true? O a. Neverland runs a current account deficit Ob. Neverland runs a current account surplus Oc. There is insufficient information to answer this question

nagine that Neverland decided to re-establish links to the rest of the world and is now a small open economy. Its economy can be described by the following onsumption and investment curves: cd(,)= 5000 – 1000r + 0.25Y and 1d(r) = 500 – 1800r+0.2Y: Its output is y= 13000 and government spending is == 1800- The world interest rate is 5%. Which of the following statements are true? O a. Neverland runs a current account deficit Ob. Neverland runs a current account surplus Oc. There is insufficient information to answer this question

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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