The Net Export Function for the Economy of Bertan Is

question 13

Essay

The net export function for the economy of Bertan is X_N = 500 - 0.1Y.
a)Suppose income is $3,000.What is the value of the trade surplus or deficit?
b)What range of income will give Bertan a trade surplus?
c)What range of income will give Bertan a trade deficit?
d)At what level of income will there be a zero balance of trade?

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Definitions:

Negotiable Instruments

Written documents that guarantee the payment of a specific amount of money to the bearer or to a specific person, under certain conditions.

Fraud in the Inducement

A type of fraud that occurs when a person is deceived into entering into an agreement through misrepresentation of material facts.

Shelter Rule

In law, this rule allows a person who acquires goods from someone who did not have clear ownership to gain rightful ownership if the original seller had the power to transfer rights in the goods to a good faith purchaser.

Impostor Rule

A legal principle that holds a person pretending to be someone else liable for the deception if it results in harm or loss.