Question: Consider a small open economy. The saving curve is given by s(r ) = 100 + 2000r,. The investment curve is given by /(r )

Consider a small open economy. The saving curve is given by

Consider a small open economy. The saving curve is given by s(r ) = 100 + 2000r,. The investment curve is given by /(r ) =300 -1000r, Let the interest rate by 5%. Then the economy's current account balance is O a. -50 O b. 50 O c. -200 O d. 200

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Komiko Tanaka invests $12,000 in LymaBean, Inc. LymaBean does not pay any dividends. Komiko projects that her investment will generate a 10 percent before-tax rate of return. She plans to invest for...

C3. Consider a small open economy with imperfect capital mobility, flexible exchange rage and fixed prices and wages. Goods-market equilibrium is where output Y is equal to the sum of consumption C,...

Economics 248 Assignment 2B This assignment has a maximum total of 100 marks and is worth 20 percent of your total grade for this course. You should complete it after completing your course work for...

Consider the following Mundell-Fleming short-run model of a small open economy under floating exchange rates given in equations (1)-(9). Assume there is perfect capital mobility so that the domestic...

b2 g) Assume instead that at time 0, people in the SOE become aware that a monetary tightening in the leading countries in the world economy is underway. As a crude representation of this, suppose...

An investor wishes to purchase a 4-year prepaid forward contract for this stock. The first dividend will be paid one year from today and the last dividend will be paid just prior to delivery of the...

explain ANSWER ALL In this problem we consider a model of a closed economy in the "very short run". Time is continuous. The assumptions are: = (( ) + ) (1) 0 0 1 0 0 = ( ) 0 0 (2) = 1 (3) 1 + = (4)...

help;;; help 3 Operations can be classified according to their volume and variety of production as well as the degree of variation and visibility. Which of the following operations would be...

2. Consider the small open economy of Troy Republic with perfect capital mobility, and whose goods and money markets are given by where C0,I0,G0,X0 are autonomous consumption, investment, government...

Answer all questions clearly and succinctly. Provide intermediate derivations where needed, but do not exceed 9 pages, graphs included, in your answers. Consider a small open economy producing a...

Could you please help clarify how to illustrate the world recession in part c with the IS LM BP model? And how is the expected exchange rate relevant here? C3. Consider a small open economy with...

Write out the details of the proof of Case (iv) in Theorem 2.5.1.

It is widely noted that even though China is the favored destination for manufacturing offshoring, it is far behind India in the business of offshored services. What are some differences between...

Find the missing values for the two tables Accounting Show all images Show all images Show all images done loading

The amount of income spent on housing is an important component of the cost of living. The total costs of housing for homeowners might include mortgage payments, property taxes, and utility costs...

Consider the information presented in E 1311. Required: 1. How would Sprint report the debt in its balance sheet if it reported under IFRS? Why? 2. Would your answer to requirement 1 change if Sprint...

What proportion of students are willing to report cheating by other students? A student project put this question to an SRS of 172 undergraduates at a large university: You witness two students...

Cost and fair value data for the trading debt securities of Lecler Company at December 31, 2022, are $62,000 and $59,600, respectively. Prepare the adjusting entry to record the securities at fair...

The City of Monroe Scholarship Foundation private-purpose trust fund had the following account balances on January 1, 2017: Debits Credits Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Question 7 . Given the following simple maze, convert the maze into a graph. ( 5 points ) Question 8 . Implement depth first search in the maze function in homework 1 . py . ( 2 0 points ) Question 9...

1. Given your basic mental state, i.e. the state you often return to. Give this state a name that you recognize and that is easy to remember, such as irritability, frustration, joy, etc. Also give...

5. The next time a negative event occurs, or a negative memory occurs, think about how you need to perform to make this a success story.

1. To understand the impression you want the other or the others to have of yourself.