In a Small Open Economy

question 31

Essay

In a small open economy,
S^d = $5 billion + ($100 billion)r^w,
I^d = $10 billion - ($50 billion)r^w,
Y = $50 billion,
G = $3 billion,
r^w = .06.
(a)Calculate the current account balance.
(b)Calculate net exports.
(c)Calculate desired consumption.
(d)Calculate absorption.

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Definitions:

Psychoticism

A personality trait associated with being prone to psychoses, including schizophrenia, characterized by tendencies towards odd or eccentric behaviors.

Hans Eysenck

A psychologist known for his work on the theory of personality and intelligence, emphasizing genetic and environmental factors.

Egocentric

A perspective focused solely on one's own point of view and interests, often neglecting or struggling to understand others' viewpoints.

Humanist Term

A concept or term associated with humanism, emphasizing human values and concerns.