1. For this small open economy, output = $25 m, government purchases = $6 m, and net factor payments rw Cd d 5% $12 m $3 m 4% $13 m $4 m 3% $14 m $5 m 2% $15 m $6 m For each rw, calculate national saving, foreign lending, and absorption. Calculate net exports as the difference between output and absorption. What is the relationship between net exports and foreign lending?
1. For this small open economy, output = $25 m, government purchases = $6 m, and net factor payments rw Cd d 5% $12 m $3 m 4% $13 m $4 m 3% $14 m $5 m 2% $15 m $6 m For each rw, calculate national saving, foreign lending, and absorption. Calculate net exports as the difference between output and absorption. What is the relationship between net exports and foreign lending?
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: A Macroeconomic Theory Of The Open Economy
Section: Chapter Questions
Problem 1CQQ
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