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Consider a small open economy with desired national saving of S = 20 + 200r* and desired investment of I = 30 - 200r*.a. Calculate national saving(S), investment(I), and the current account balance(NX or CA) in equilibrium when the real world interest rate is : r* = 0.025, r* = 0.05 and r* = 0.0(i) r* = 0.025: S = ? , I = ? , CA = ?(ii) r* = 0.05: S = ? , I = ? , CA = ?(iii) r* = 0.00: S = ? , I = ? , CA = ?
What could a president or other government policymaker do to raise a contry's standard of living.
Explain how many units of the variable innpout should be used to maximize profits. What are the maximum profits this firm can earn.
make a graph showing gdp growth trend for the 5 countries.comment on the development. particular around and after the
Using the aggregate demand and supply model, draw an economy in a boom with equilibrium national income above full employment GDP.
Why might EMS provisions for the extension of central bank credits from strong- to weak-currency members have increased the stability of EMS exchange rates?
1. explain what effect an expansionary fiscal policy would have on the price level and real gdp starting from full
A rural utility company provides standby power to pumping stations using diesel-powered generators. an alternative has arisen whereby the utility could use a combination of wind and solar power generators, but it will be a few years before the ene..
Imagine a firm that hires 2 types of workers, some with computer skills and some without. If technology advances so that computers become more useful to the firm, what happens to the marginal product of the two type
Consider the following infinitely repeated model between two firms. Each period, the firms earn profits of 10 if they successfully collude. If a firm deviates from the aggreement, it earns 15 in the period in which it cheats. In each period that t..
During the recent recession, when countries around the world suffered high unemployment rates and the governments were experiencing huge budget deficits, economists debated whether to raise or cut taxes or to raise or cut government spending.
On Wednesday, the Commerce Department reported that the economy continued to stagnate during the first three months of the year, with a sharp pullback in consumer spending the primary factor at play.Americans cut back on a wide variety of discretio..
Alternative 2 $150 cash now plus $100 per month for 20 month beginning the first day of next month.
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