Question 23Suppose the world consists of two countries, ABC and XYZ, only. The (autarky) equilibrium interest rate in ABC and XYZare 15% and 12% respectively. The market for loanable funds can be described by the following equations:Demand for loanable fundsDFABC = 300 – 7İABCDFXYZ = 180 – 6ixyZSupply of loanable fundsSFB = 30 + 3İABCCountryАВСXYZSFc = 60 + 14ixYZ%3DNote: Interest rates are expressed in percentage points (i.e., if i = 5, then i = 5%).(inflows orWhen the international flows of capital are allowed, XYZ will experience net capital(enter a number here and keep your answer to theoutflows) and the size of XYZ's trade balance isnearest integer)

The loanable funds market would result in the equilibrium between the demand and the supply for the…

Suppose the world consists of two countries, ABC and XYZ, only. The (autarky) equilibrium interest rate in ABC and XYZ are 15% and 12% respectively. The market for loanable funds can be described by the following equations: Demand for loanable funds DFABC = 300 – 7/ABC DFXYZ = 180 – 6ixyz Supply of loanable funds SF 30 + 3İABC SFc 60 + 14ixyz Country ABC XYZ Note: Interest rates are expressed in percentage points (i.e., it i = 5, then i= 5%). (inflows or When the international flows of capital are allowed, XYZ will experience net capital outflows) and the size of XYZ's trade balance is (enter a number here and keep your answer to the nearest integer)

Suppose the world consists of two countries, ABC and XYZ, only. The (autarky) equilibrium interest rate in ABC and XYZ are 15% and 12% respectively. The market for loanable funds can be described by the following equations: Demand for loanable funds DFABC = 300 – 7/ABC DFXYZ = 180 – 6ixyz Supply of loanable funds SF 30 + 3İABC SFc 60 + 14ixyz Country ABC XYZ Note: Interest rates are expressed in percentage points (i.e., it i = 5, then i= 5%). (inflows or When the international flows of capital are allowed, XYZ will experience net capital outflows) and the size of XYZ's trade balance is (enter a number here and keep your answer to the nearest integer)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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