Consider a Small Open Economy in Equilibrium with a Zero

question 56

Essay

Consider a small open economy in equilibrium with a zero current account balance.What happens to national saving,investment,and the current account balance in equilibrium if
(a)future income rises?
(b)business taxes rise?
(c)government expenditures decline temporarily?
(d)the future marginal product of capital rises?

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Definitions:

Prosopagnosia

A brain disorder marked by the incapacity to identify facial features, commonly referred to as face blindness.

Perception

The process by which sensory information is organized, interpreted, and consciously experienced, forming a basis for understanding the environment.

Sensation

How our sensory receptors and nervous system take in and illustrate stimuli energies from the surroundings.

Clairvoyance

The claimed ability to gain information about an object, person, location, or physical event through extrasensory perception, beyond the five senses.