Essay
In a small open economy
Sᵈ = $20 billion + ($100 billion)r%
Iᵈ = $30 billion - ($100 billion)r%
Y = $70 billion
G = $20 billion
rʷ = .04.
a.Calculate the current account balance.
b.Calculate net exports.
c.Calculate desired consumption.
d.Calculate absorption.
Correct Answer:
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a.-$2 billion
b.-$2 ...View Answer
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Correct Answer:
Verified
b.-$2 ...
View Answer
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