Question: 2. [Blanchard and Johnson (2015), p. 142, question 3] Consider the following open economy. The real exchange rate is xed and equal to one. Consumption,

2. [Blanchard and Johnson (2015), p. 142, question 3] Consider the

following open economy. The real exchange rate is xed and equal to

2. [Blanchard and Johnson (2015), p. 142, question 3] Consider the following open economy. The real exchange rate is xed and equal to one. Consumption, investment, government spending and taxes are given by: C = 10 + 0.8(Y e T), I = 10, G = 10 and T = 10. Imports and exports are given by: 0.31\" and 0.3)\

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