wwwwwwwwww wwwwww Consider a pure endowment, 2-period, 2- country world where all housholds have logarithimc utility...

 

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wwwwwwwwww wwwwww Consider a pure endowment, 2-period, 2- country world where all housholds have logarithimc utility placing equal weight on both periods. The endowments for the two countries are provided in the table. a. What are the autarky interest rates and the world interest rate if there are no barriers to international borrowing or lending? Period 1 Period 2 Country A 10 12 Country B 10 10 simultaneous determination of the equilibrium world interest rate and the current accounts for the two countries. b. Draw and explain a diagram that illustrates the wwwwwwwwww wwwwww Consider a pure endowment, 2-period, 2- country world where all housholds have logarithimc utility placing equal weight on both periods. The endowments for the two countries are provided in the table. a. What are the autarky interest rates and the world interest rate if there are no barriers to international borrowing or lending? Period 1 Period 2 Country A 10 12 Country B 10 10 simultaneous determination of the equilibrium world interest rate and the current accounts for the two countries. b. Draw and explain a diagram that illustrates the