NX-500-500e r=r*=5 Suppose the world interest rate drop from r=5 to 2percent (assume government G=750). Find the national saving, investment, trade balance, capital outflow and equilibrium

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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1. Consider the following economy of Syldavia (a small open economy)
Y=C+I+G+NX,NX = S-"|""|
Y-8000
1000-100r
NX-500 500e
r=rt=5
Suppose the world interest rate drop from r-5 to 2percent (assume
government
G-750). Find the national saving, investment, trade balance, capital outflow and equilibrium
exchange rate.
H
Transcribed Image Text:1. Consider the following economy of Syldavia (a small open economy) Y=C+I+G+NX,NX = S-"|""| Y-8000 1000-100r NX-500 500e r=rt=5 Suppose the world interest rate drop from r-5 to 2percent (assume government G-750). Find the national saving, investment, trade balance, capital outflow and equilibrium exchange rate. H
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