y = c + i + g + nx,
Business, 16.11.2019 02:31, princessmnicole2
Consider an economy described by the following equations:
y = c + i + g + nx,
y = 5,000,
g = 1,000,
t = 1,000,
c = 250 + 0.75(y – t),
i = 1,000 – 50r,
nx = 500 – 500e,
r = r* = 5.
a. in this economy, solve for national saving, investment, the trade balance, and the equilibrium exchange rate.
b. suppose now that g rises to 1,250. solve for national saving, investment, the trade balance, and the equilibrium exchange rate. explain what you find.
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Consider an economy described by the following equations:
y = c + i + g + nx,
y = c + i + g + nx,
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