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johnpaul92 johnpaul92
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8 years ago
A large open economy has desired national saving of S to power of ((d)) = 1200 + 1000r to power of ((w)), and desired national investment of I to power of ((d)) = 1000 - 500r to power of ((w)). The foreign economy has desired national saving of S and ((d) over (For)) = 1300 + 1000r to power of ((w)), and desired national investment of I and ((d) over (For)) = 1800 - 500r to power of ((w)). Suppose the foreign country's government increases its spending by 300 and private saving does not change. Then in equilibrium, the foreign country has net exports equal to
A) 500.
B) -350.
C) 350.
D) -500.
Textbook 
Macroeconomics

Macroeconomics


Edition: 8th
Authors:
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supamansupaman
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johnpaul92 Author
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#2
8 years ago
Wow, you answered what I thought was impossible to answer, thank you!
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