Essay
In a small open economy,
Sd = $5 billion + ($100 billion)rw,
Id = $10 billion - ($50 billion)rw,
Y = $50 billion,
G = $3 billion,
rw = .06.
(a)Calculate the current account balance.
(b)Calculate net exports.
(c)Calculate desired consumption.
(d)Calculate absorption.
Correct Answer:
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(a)$4 billion
(b)$4 ...View Answer
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Correct Answer:
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(b)$4 ...
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