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. -$2 billion
b. -$...View Answer
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Correct Answer:
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b. -$...
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