In a Small Open Economy

question 30

Essay

In a small open economy,
S^d = $20 billion + ($100 billion) r%
I^d = $30 billion - ($100 billion) r%
Y = $70 billion
G = $20 billion
r^w = .04.
a. Calculate the current account balance.
b. Calculate net exports.
c. Calculate desired consumption.
d. Calculate absorption.

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Definitions:

Participant Variable

Features or characteristics inherent to participants in a study that can affect the outcome of the research, such as age, gender, background, or personality traits.

Techniques

Methods or procedures used to accomplish a specific task or achieve a particular outcome, often within a professional or specialized field.

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, and motives to another person.