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johnpaul92 johnpaul92
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8 years ago
A large open economy has desired national saving of Sd = 20 + 200rw, and desired national investment of Id = 30 - 200rw. The foreign economy has desired national saving of S and ((d) over (For)) = 40 + 100rw, and desired national investment of I and ((d) over (For)) = 75 - 400rw.
(a)   Calculate the equilibrium values of rw, CA, CA with subscript((For)), S, I, S with subscript((For)), and I with subscript((For)).
(b)   Suppose S to power of ((d)) rises by 45, so that now S to power of ((d)) = 65 + 200rw. Calculate the equilibrium values of rw, CA, CA with subscript((For)), S, I, S with subscript((For)), and I with subscript((For)).
(c)   Suppose, with S to power of ((d)) back to S to power of ((d)) = 20 + 200rw, as in part (a), that Id rises by 45, to Id = 75 - 200rw. Calculate the equilibrium values of rw, CA, CA with subscript((For)), S, I, S with subscript((For)), and I with subscript((For)).
Textbook 
Macroeconomics

Macroeconomics


Edition: 8th
Authors:
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supamansupaman
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8 years ago
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johnpaul92 Author
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8 years ago
Wow, you answered what I thought was impossible to answer, thank you!
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8 years ago
Glad to be part of your success Wink Face
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