An open economy with absolute mobility of capital is described as follows: consumption function is given as C = 50 + 0, 8(Y T), where Y is output, andT is net taxes. Investment function is given as I = 20–10i, where I is nominal interest rate. Government spending G = 20, tax Tx = 10, export Ex = 6E + 10, import Im = 22-4E +0,3Y where E - nominal exchange rate (price of foreign currency in terms of domestic currency). For one unit of foreign currency, you can get 3 units of domestic currency. The real money supply is M /P=50. The demand for real money is described by the following function:L(Y,i) = 0,5Y-10i. %3D Find IS curve in the form Y=a-bi+cE, where a,b,c are constants. Type in the answer these constants with spaces and commas between them, that is: a, b, c.

Consider an economy described by the following equations: Y=C+I+G+NX Y=10,000 G=3,500 T=2,300 C-600 + 4/5(Y-T) 1=1,100-60r NX-1,800-670€ r.-8. In this economy, private saving = rate public saving investment = national saving the trade balance and the equilibrium exchange. (please enter your answers in numerical value without any dollar sign, comma, or a decimal place.)

Saving-Investment Diagram Real Interest Rate, r(percent Saving Curve Investment Curve DE F GH Desired Saving and Investment (in billions of dollars) Based on the Saving-Investment Diagram, if the world real interest rate is indicated by C, then the difference between values H and D measures the net capital outflow the difference between values H and F measures the trade deficit the difference between values H and D measures the trade deficit the domestic real interest rate is indicated by B none of the above

Graphs and questions in images. Thank you!

1) Consider a large open economy that engages in a fiscal contraction. In response to this policy change, what will happen to (a) national savings (b) the real rate of interest (c) net capital flows (d) the real exchange rate and (e) net exports?

Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently experiencing a balanced government budget.   Real Interest Rate National Saving Domestic Investment Net Capital Outflow (Percent) (Billions of dollars) (Billions of dollars) (Billions of dollars) 7 60 25 -10 6 55 30 -5 5 50 35 0 4 45 40 5 3 40 45 10 2 35 50 15     Given the information in the preceding table, use the blue points (circle symbol) to plot the demand for loanable funds. Next, use the orange points (square symbol) to plot the supply of loanable funds. Finally, use the black point (cross symbol) to indicate the equilibrium in this market.       On the following graph, plot the relationship between the real…

Which of the following would be part of Canada's capital and financial account? dividend payments received by a Canadian on his foreign stock holdings one hundred shares of Tesla stocks purchased by a Canadian investor a Disney tour taken by a Canadian in Florida the interest payment on foreign government bonds held by the Bank of Canada

Create a graph using the loanable funds model illustrating the below explanation. An increased budget deficit triggers higher government borrowing, leading to heightened competition for available funds in financial markets and subsequently higher interest rates. These elevated interest rates discourage private investment and borrowing by businesses and individuals, a phenomenon known as "crowding out." Simultaneously, the higher interest rates can result in a stronger domestic currency, making exports relatively more expensive and imports cheaper. This dual impact worsens the trade deficit by reducing export competitiveness and increasing the attractiveness of imported goods, contributing to a broader economic imbalance.

Suppose that the government decides to cut spending. In a three graphs diagram, show theimpact of this policy on real interest rate, national saving, investment, net capital outflows,demand for currency (NX), and supply of currency? Will the currency appreciate ordepreciate?

An open economy with absolute mobility of capital is described as follows: consumption function is given as C = 50 +0, 8(Y - T), where Y is output, and T is net taxes, Investment function is given as I = 20-10i, where I is nominal interest rate. Government spending G 22-4E+0, 3Y where E - nominal exchange rate (price of foreign currency in terms of domestic currency). For one unit of foreign currency, you can get 3 units of domestic currency. The real money supply is M* /P= 50. The demand for real money is described by the following function: L(Y,i) = 0, 5Y-10i. 20, tax Tr = 10, export Ex = 6E +10, import Im %3D Find BP curve, if the economy is initially in the internal and external equilibrium. Write an equation for BP without spaces and % signs