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Consider a Small Open Economy That Is in Equilibrium with a Current

question 108

Essay

Consider a small open economy that is in equilibrium with a current account surplus.
(a)Draw a diagram showing this situation.
(b)Now suppose that future income increases.Show what happens in your diagram.What happens to the world real interest rate and the equilibrium quantities of saving,investment,and the current account balance?
(c)Repeat parts (a)and (b)for the case of a large open economy,showing a situation in which the home country initially has a current account surplus.Draw a diagram and describe how the rise in future income in the home country affects all four variables (the world real interest rate and the equilibrium quantities of saving,investment,and the current account balance)in both countries.

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A set of attributes, behaviors, and roles associated with boys and men as expressed by society, culture, and individuals.

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The act of engaging in sexual activities with someone other than one's spouse, considered a breach of trust in the context of marriage.

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Individuals exhibiting sexual behaviors or interests that diverge from societal norms, despite being attracted to the opposite sex.

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Classified or grouped according to sociological terms, theories, or criteria.

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