![C. [6 points ] Hard. Contrast the before and after war situation. Specifically the trade flow and exchange rate. Would it be](http://img.homeworklib.com/questions/726ca0a0-788c-11ea-9b61-e5a85bcc1943.png?x-oss-process=image/resize,w_560)
Homework Answers
Y=C+I+G+NX
1000=665+300+300+135-100e
1000=1400-100e
100e=400
e=400/100
4
Export=135-25e
135-25*4
135-100=35
Import=75e
=75*4
=300
Saving=Y-C
=1000-665
=335
Trade balance=export -import
=35-300
=-265
Investment =300
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