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Net outflow of capital and the foreign exchange market

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Reference no: EM133277611

Suppose that Colombia is a small open economy and the United States is a big economy. The United States Congress approves to your government a reduction of the tax burden to encourage greater economic growth. The impact of this policy on the Colombian economy will be? Take as reference the market for loanable funds, the net outflow of capital and the foreign exchange market.

Write in the space provided your respective analysis and make the corresponding graph, be sure to name the axes and the curves in theg raphics, as well as indicating the sequence of movements and/or displacements in where necessary, this will be taken into account for the qualification

Reference no: EM133277611

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