National savings of a Classical small open economy is 120, Investment is 20, and the net export schedule is: NX = 200 - 50*(real exchange rate). If trade restrictions shift the net export function to NX = 300 - 50*(real exchange rate), in the new situation:

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A: Calculation of current account balance .

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A: Home CountryCd = 400 + 0.5(Y-T) - 100rwId = 300 - 100rwY = 2000T = 250G = 300Foreign CountryCd = 200…

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Q: E- 10 + 0.5Y = 160 - 50r NX = 80 - 0.1Y - e e = 50 - 0.1Y + B (r – r*) G= 10 vhere C is consumption,…

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A: Note:- Dear learner you have posted a question with multiple sub parts, as per our policy we have…

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Q: Consider a world with only two countries (i.e., two large open economies), the home country and the…

A: Home CountryCd = 400 + 0.5(Y-T) - 100rwId = 300 - 100rwY = 2000T = 250G = 300Foreign CountryCd = 200…

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