Rivendell, a small open economy, manages to have a national savings equal to 1,001. Its investments are

Fantastic news! We've Found the answer you've been seeking!

Question:

Rivendell, a small open economy, manages to have a national savings equal to 1,001. Its investments are worth 500. If the equation for net export is given by

NX = 2500 - 200?

what is the real exchange rate? Round to the nearest hundredth decimal place (2 decimal places).

Related Book For answer-question

International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

See More Books

Posted Date: Feb 21, 2024 05:00 AM

See More Questions

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Assume for simplicity that these payments continue for 20 years and then cease. The interest rate is 4% . You plan to cover this obligation by investing in 5- and20-year maturity Treasury strips.(a)...
= 1. The following table summarizes the opinion about afterlife for different races and gen- ders from a General Social Survey. The response is "belief in life after death" yes, 2 undecided, 3 = no),...
X-rays of wavelength 0.0973 nm are directed at an unknown crystal. The second diffraction maximum is recorded when the X-rays are directed at an angle of 23.4 relative to the crystal surface. What is...
Compare and contrast Kerberos and a simple password based authentication mechanism.
An incomplete subsidiary ledger of wire cable for July is as follows: a. Complete the materials issuances and balances for the wire cable subsidiary ledger. b. Determine the balance of wire cable at...
a. Are the quadratic terms important? Consider a linear model of LNEXPENSES on 12 explanatory variables. For the explanatory variables, include assets, GROUP, both versions of losses and gross...
On August 1, 2010, Pereira Corporation has ready for sale 2,000 Wiglow instruments. During the next 5 months, 1,600 Wiglows are sold at $460 each with a one-year warranty. Pereira estimates that the...
a) Let R be the relation on the set A = {1, 2, 3, 4} defined by R = {(x, y)/x + 3y 12}. Find the matrix representing R R. b) Suppose that the relation R is defined on the set Z where aRb means: ba",...
How do you calculate the percentage of change in sales from 20X8 to 20X9? This will go in cell D7? Show the formula. Kretsmart Common-Size Income Statements For the Years Ended December 31, 20'X'9,...
As the Compensation Manager of the hiring firm, (in paragraph/letter format written to the new engineers) that will explain the compensation structure of the firm to the newly hired Mechanical...
Simplify 64x4 72x
What are the mechanisms underlying enzyme inhibition, including competitive, non-competitive, and uncompetitive inhibition, and how do reversible and irreversible inhibitors modulate enzyme activity...
How does Vygotsky's theory of learning help us understand the interaction between the individual and his environment? can you please give me two examples.
can you also explain to me the different theoretical approaches to the study of human development and propose practical applications to promote positive outcomes.
What are the mechanisms underlying nuclear envelope dynamics during cell division, including nuclear envelope breakdown and reassembly, and how do these processes coordinate with chromosome...
/** This class has a main method that prints out an integer array in various ways Difficulty: Easy */ public class ArrayPrinter { public static void main(String[] args) { int[] data = {2, 34, 57, 31,...
The following processes constitute the air-standard Diesel cycle: 12: isentropic compression,23: constant-volume energy addition (T and P increase),34: constant-pressure energy addition (v...
Calculate the dollar rates of return on the following assets: a. A painting whose price rises from$200,000to$250,000in a year. b. A bottle of a rare Burgundy, Domaine de la Romane-Conti 1978, whose...
Suppose that the European Commission asked you to develop a brief on behalf of subsidizing European software developmentbearing in mind that the software industry is currently dominated by U.S....
In our discussion of labor market pooling, we stressed the advantages of having two firms in the same location: If one firm is expanding while the other is contracting, its to the advantage of both...
Comment on this statement: Dynamic modeling is about interaction.
Explain how objects interact by exchanging messages.
Describe the relationship between dynamic modeling, behavioral modeling, and structural modeling.

Rivendell, a small open economy, manages to have a national savings equal to 1,001. Its investments are

Question:

Expert Answer:

To find the real exchange rate well use the equation NX SI Where NX Net ... View the full answer

International Economics Theory and Policy

Students also viewed these economics questions