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Other Fields Homework Help Economics Topic started by: johnpaul92 on Jan 30, 2016



Title: The government of a small open economy announces a tax cut of $100 this year, combined with a tax in
Post by: johnpaul92 on Jan 30, 2016
The government of a small open economy announces a tax cut of $100 this year, combined with a tax increase of $110 next year, when the interest rate is 10%. What are the effects of this change on the world real interest rate, national saving, investment, and the current account balance in equilibrium when
(a)   Ricardian equivalence holds?
(b)   Ricardian equivalence does not hold?


Title: Re: The government of a small open economy announces a tax cut of $100 this year, combined with a ta
Post by: supaman on Feb 4, 2016
Content hidden


Title: Re: The government of a small open economy announces a tax cut of $100 this year, combined with a tax in
Post by: johnpaul92 on Feb 13, 2016
This answers my question, thank you so much


Title: Re: The government of a small open economy announces a tax cut of $100 this year, combined with a tax in
Post by: supaman on Feb 14, 2016
Take care for now