In a small open economy,
Sd = $5 billion + ($100 billion) rw,
Id = $10 billion - ($50 billion) rw,
Y = $50 billion,
G = $3 billion,
rw = .06.
(a) Calculate the current account balance.
(b) Calculate net exports.
(c) Calculate desired consumption.
(d) Calculate absorption.
(a) $4 billion
(b) $4 billion
(c) $36 billion
(d) $46 billion
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Unlike a sole proprietorship, a corporation's shareholders
A) own the firm and directly manage it as well. B) do not own the firm but directly manage it. C) own the firm but do not directly manage it. D) do not own the firm and do not directly manage it.
Which of the following would not account for the observed wage differential between African Americans and whites in the United States?
a. differences in the quantity of on-the-job training b. differences in the quality of education c. discrimination by employers d. differences in job experience e. differences in access to public assistance programs
In the classical model with an open economy, an increase in the trade deficit as a result of a tax cut, causes a decline in the interest rate, attracting more loanable funds from abroad
a. True b. False
The percentage of U.S. families below the poverty line is approximately
a. 5 percent b. 10 percent c. 25 percent d. 45 percent e. 65 percent