Consider two large open economies, the home economy and the foreign economy. In both countries th...

Question

Question

Consider two large open economies, the home economy and the foreign economy. In both countries the following relationships ho

Can someone please explain?

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

omeshic . -1000- -320 ± D4 (1000-20 치5P aport a 75-3 AS AS Dbamestie namona Saving -1000-320-Dry (800) t. 20040-16 360t 32-6

Add a comment

Answer 2

Similar Homework Help Questions

7. Consider Two large open economics, the home economy and the foreign economy. In the home count...

7. Consider Two large open economics, the home economy and the foreign economy. In the home country the following relationships hold: desired consumption, Cd = 420+0.4(Y-T)-200rw desired investment, Id =250-200rw output, Y =1000 TAXES, t = 200 Government purchases, G =275 In the foreign country the following relationships hold: Desired consumption, Cdfor = 480+0.4(Yfor-Tfor)-300rw Desired investment, Idfor=225-300rw Output, Yfor = 1500 Taxes, T for =300 Government purchase, G for =300 What is the equilibrium interest rate in the international capital...
2. Consider a large open domestic economy with a financial account surplus. i. Draw a diagram sho...

2. Consider a large open domestic economy with a financial account surplus. i. Draw a diagram showing this situation (Your answer should include two graphs, one for the omestic economy and one for the foreign economy). (10 Points)- Note: Draw the two graphs side by side and clearly indicate the world interest rate as a single line going through both graphs. ii. What are the effects, in equilibrium, on the world real interest rate, domestic national saving, domestic investment, the...
The graphs below show the saving and investment schedules for two large open economies. Home Foreign...

The graphs below show the saving and investment schedules for two large open economies. Home Foreign = 16% World real interest rate (%) = 10% = 6% = 4% OHITIT UTTTTTTTTTTTTTTTTTTT 0.0 20.0 40.0 60.0 80.0 100.0 saving, investment (billions) 0.0 20.0 40.0 60.0 80.0 100.0120.0 saving, investment (billions) The equilibrium world real interest rate is: 10 % (enter your response as a percentage). At this equilibrium interest rate, 'Home' is a and has a current account net borrower net...

Question 1: General Equilibrium in closed and open economies [50 marks] Consider the following closed Keynesian...

Question 1: General Equilibrium in closed and open economies [50 marks] Consider the following closed Keynesian economy Desired consumption, Cd = 1000 + 0.6(Y-T) - 300r; Desired investment, Id = 600 - 300r; Money deman d, L = 0.6Y - 300r; Output, Ȳ = 4000; Expected inflation, πe = 0; Calculate the investment and consumption. c. Find the new long-run equilibrium by taking M = 6000 and the price level as flexible (repeat part a). The following are the steps...
Consider two open economies in which the real exchange rate is fixed and equal to one....

Consider two open economies in which the real exchange rate is fixed and equal to one. Consumption, investment, government spending, taxes, imports and exports are given by equations below for each economy. Variables with * denote values for the foreign economy. Domestic Economy: C= 12 + 0.8 (Y-T) I= 8 G= 10 T=11 IM= 0.2Y EX= 0.2Y* Foreign Economy: C*= 12+ 0.8 (Y*-T*) I*=8 G*=10 T*=11 IM*= 0.2Y* EX= 0.2Y a) Solve for the equilibrium output in the domestic economy,...
31. Starting from a small open economy with balanced trade, if large foreign countries increase their domestic gover...

31. Starting from a small open economy with balanced trade, if large foreign countries increase their domestic government purchases, this policy will tend to increase: A) investment in the small open economy. B) saving in the small open economy. C) exports by the small open economy. D) imports by the small open economy.

Consider a large one economy where: Cd= 1+.9(Y-T)-150r Id=80-200r y=250 T=40 G=50 NFP=0 If the sa...

Consider a large one economy where: Cd= 1+.9(Y-T)-150r Id=80-200r y=250 T=40 G=50 NFP=0 If the saving schedule for the rest of the world is Sd=15+516.6r and its investment schedule is Id=120-300r, then: a) What is the equilibrium world interest rate? b) What is the current account for the large open economy? c) What is the financial account for the large open economy?
6. A large open economy has desired national saving of sd 2000+ 1000-, and desired national...

6. A large open economy has desired national saving of sd 2000+ 1000-, and desired national investment of Id - 1500- 500/- he foreign economy has desired national saving of sfor 1200+ 1000.", and desired national investment of or 2000-500-w, ) (5 point) Calculate the equilibriumrw ) (1 point) Calculate the equilibrium S ) (I point) Calculate the equilibrium SFor d) (1 point) Calculate the equilibrium / ) (1 point) Calculate the equilibrium IFor (2 point) Calculate the equilibrium CA.
Consider two fictional economies, one called the domestic country and the other the foreign country. Given...

Consider two fictional economies, one called the domestic country and the other the foreign country. Given the transactions listed below, construct the balance of payments for each country. If necessary, include a statistical discrepancy. a. The domestic country purchased $120 in oil from the foreign country b. Foreign tourists spent $23 on domestic ski slopes. c. Foreign investors were paid $12 in dividends from their holdings of domestic equities d. Domestic residents gave $20 to foreign charities e. Domestic businesses...

Question 1: General Equilibrium in closed and open economies [50 marks] Consider the following closed Keynesian...

Question 1: General Equilibrium in closed and open economies [50 marks] Consider the following closed Keynesian economy Desired consumption, Cd = 1000 + 0.6(Y-T) - 300r; Desired investment, Id = 600 - 300r; Money deman d, L = 0.6Y - 300r; Output, Ȳ = 4000; Expected inflation, πe = 0; Assume that we are in a closed economy. Suppose that T = G = 300 and M = 8000. Find the equilibrium values of output, consumption, investment, the real interest...

Consider two large open economies, the home economy and the foreign economy. In both countries th...

Homework Answers

Add Answer to:
Consider two large open economies, the home economy and the foreign economy. In both countries th...

Post as a guest

Earn Coins

7. Consider Two large open economics, the home economy and the foreign economy. In the home count...

2. Consider a large open domestic economy with a financial account surplus. i. Draw a diagram sho...

The graphs below show the saving and investment schedules for two large open economies. Home Foreign...

Question 1: General Equilibrium in closed and open economies [50 marks] Consider the following closed Keynesian...

Consider two open economies in which the real exchange rate is fixed and equal to one....

31. Starting from a small open economy with balanced trade, if large foreign countries increase their domestic gover...

Consider a large one economy where: Cd= 1+.9(Y-T)-150r Id=80-200r y=250 T=40 G=50 NFP=0 If the sa...

6. A large open economy has desired national saving of sd 2000+ 1000-, and desired national...

Consider two fictional economies, one called the domestic country and the other the foreign country. Given...

Question 1: General Equilibrium in closed and open economies [50 marks] Consider the following closed Keynesian...

Consider two large open economies, the home economy and the foreign economy. In both countries th...

Homework Answers

Add Answer to: Consider two large open economies, the home economy and the foreign economy. In both countries th...

Post as a guest

Earn Coins

Add Answer to:
Consider two large open economies, the home economy and the foreign economy. In both countries th...