Essay
Consider a large open economy that has a zero current account balance.What are the effects on the world real interest rate,national saving,investment,and the current account balance in equilibrium if
(a)future income rises?
(b)business taxes decline?
(c)government purchases decline?
(d)the future marginal product of capital declines?
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(a)rw rises,S falls,I falls,CA ...View Answer
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