Question: Let's say there are only two countries in the entire world, Argentina and Chile, and there is free trade between them. The aggregated investments in
Let's say there are only two countries in the entire world, Argentina and Chile, and there is free trade between them. The aggregated investments in both countries are ^A and I^C that are both exogenous variables. The saving is giving by
S^A= A+ar where A,a> for Argentina and for Chile it is given by S^C that is an exogenous variable. I have show the condition where Argentina is a net exporter. How?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
To demonstrate that Argentina is a net exporter in the scenario described we need to analyse the rel... View full answer
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
