Question: i need a a graph for this question with assuming a and b parts with correct and full answer. Lonsider a small open economy that

i need a a graph for this question with assuming a and b parts with correct and full answer.  i need a a graph for this question with assuming a

Lonsider a small open economy that initially has a trade deficit. a) Draw a diagram illustrating this economy's loanable funds market. Be sure to label the axes, curves (with the subscript i) and equilibrium values (with the subscript 1 ). b) Assume that two changes have occurred: there has been a decrease in investment demand and all other countries have engaged in contractionary fiscal policy. As a result of these changes, the small open economy now has balanced trade. On the same diagram as part a, illustrate these changes to the economy's loanable funds market. Be sure to label the curves and new equilibrium values (each with the subscript 2 )

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 Accounting Questions!