Consider a Large Open Economy That Has a Zero Current

question 8

Essay

Consider a large open economy that has a zero current account balance.What are the effects on the world real interest rate,national saving,investment,and the current account balance in equilibrium if
(a)future income rises?
(b)business taxes decline?
(c)government purchases decline?
(d)the future marginal product of capital declines?

---

Definitions:

Goodwill

The intangible asset that arises when a business is valued at more than the sum of its tangible assets, often related to reputation, brand, or customer relationships.

Organizing Information

The act of structuring and arranging data or knowledge in a coherent and logical manner.

Customer Complaints

refer to expressions of dissatisfaction made by customers regarding a company's products or services.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in our daily lives.