A small open economy is described by the following equations: C= 50 + 0.75(Y – T) |= 200 -20r NX = 200 - 50e M/P = Y – 40r G = 200 T= 200 M = 3,000 P= 3 * =5 The equilibrium exchange rate is (please enter your answer in numerical form with no decimal space, comma, or percentage), the equilibrium income is (please enter your answer in numerical form with no decimal space, comma, or dollar sign), and net exports is (please enter your answer in numerical form with no decimal space, comma, or dollar sign). If the government increases its spending by 50, assuming a floating exchange rate, the equilibrium exchange rate is (please enter your answer in numerical form with no decimal space, comma, or percentage), the equilibrium income is (please enter your answer in numerical form with no decimal space, comma, or dollar sign), and net exports is (please enter your answer in numerical form with no decimal space, comma, or dollar sign). If the government increases its spending by 50, assuming a fixed exchange rate, the equilibrium income is (please enter your answer in numerical form with no decimal space, comma, or dollar sign), and the money supply is (please enter your answer in numerical form with no decimal space, comma, or dollar sign).
A small open economy is described by the following equations: C= 50 + 0.75(Y – T) |= 200 -20r NX = 200 - 50e M/P = Y – 40r G = 200 T= 200 M = 3,000 P= 3 * =5 The equilibrium exchange rate is (please enter your answer in numerical form with no decimal space, comma, or percentage), the equilibrium income is (please enter your answer in numerical form with no decimal space, comma, or dollar sign), and net exports is (please enter your answer in numerical form with no decimal space, comma, or dollar sign). If the government increases its spending by 50, assuming a floating exchange rate, the equilibrium exchange rate is (please enter your answer in numerical form with no decimal space, comma, or percentage), the equilibrium income is (please enter your answer in numerical form with no decimal space, comma, or dollar sign), and net exports is (please enter your answer in numerical form with no decimal space, comma, or dollar sign). If the government increases its spending by 50, assuming a fixed exchange rate, the equilibrium income is (please enter your answer in numerical form with no decimal space, comma, or dollar sign), and the money supply is (please enter your answer in numerical form with no decimal space, comma, or dollar sign).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A small open economy is described by the following equations:
C = 50 + 0.75(Y – T)
|= 200 -20r
NX = 200 - 50e
M/P = Y - 40r
G = 200
T= 200
M = 3,000
P= 3
r* = 5
The equilibrium exchange rate is
(please enter your answer in numerical form with no decimal
space, comma, or percentage), the equilibrium income is
(please enter your answer in numerical form
with no decimal space, comma, or dollar sign), and net exports is
(please enter your answer in numerical
form with no decimal space, comma, or dollar sign). If the government increases its spending by 50, assuming a floating exchange rate,
the equilibrium exchange rate is
(please enter your answer in numerical form with no decimal
space, comma, or percentage), the equilibrium income is
(please enter your answer in numerical form
with no decimal space, comma, or dollar sign), and net exports is
(please enter your answer in numerical
form with no decimal space, comma, or dollar sign).
If the government increases its spending by 50, assuming a fixed exchange rate, the equilibrium income is
(please
enter your answer in numerical form with no decimal space, comma, or dollar sign), and the money supply is
(please enter your answer in numerical form with no decimal space, comma, or dollar sign).
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