A Large Open Economy Has Desired National Saving of S^d

question 97

Essay

A large open economy has desired national saving of S^d = 20 + 200r^w,and desired national investment of I^d = 30 - 200r^w.The foreign economy has desired national saving of = 40 + 100r^w,and desired national investment of = 75 - 400r^w.
(a)Calculate the equilibrium values of r^w,CA,CA_For,S,I,S_For,and I_For.
(b)Suppose S^d rises by 45,so that now S^d = 65 + 200r^w.Calculate the equilibrium values of r^w,CA,CA_For,S,I,S_For,and I_For.
(c)Suppose,with S^d back to S^d = 20 + 200r^w,as in part (a),that I^d rises by 45,to I^d = 75 - 200r^w.Calculate the equilibrium values of r^w,CA,CA_For,S,I,S_For,and I_For.

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Definitions:

Cities

Large human settlements characterized by areas of high population density and vast human features in comparison to areas surrounding them.

Canada

A country in North America consisting of ten provinces and three territories, known for its vast landscapes, multicultural communities, and bilingualism in English and French.

Test Scores

Quantitative measures that reflect an individual's performance on an examination or test.

Students

Individuals actively engaged in learning at educational institutions, such as schools, colleges, or universities.