Why has it been politically challenging for governments to refocus efforts on new technology, education, and physical capital investment since the 2008-2009 recession? Select the correct answer below. They have focused on short-term recovery, but not enough on the long-term. O They have focused on long-term recovery, but not enough on the short-term O Efforts have instead been directed towards keeping the exchange rate constant. High income countries do not prioritize the development of new technology, education, or physical capital investments.

Consider a world with only two countries (i.e., two large open economies), the home country and the foreign country. Both countries have a zero current account balance initially. When answering the following questions, clearly label the lines and show the changes in the graph provided below. Give an intuitive explanation for the effects in each case. b-What are the effects on the world equilibrium interest rate, national saving, investment, and the current account balance in each country if home expected future marginal productivity of capital increases? c- What are the effects on the world equilibrium interest rate, national saving, investment, and the current account balance in each country if foreign country experiences a temporary adverse supply shock?

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How is the impact of contractionary monetary policy different in an open economy than in a closed economy? How is the impact of expansionary fiscal policy different in an open economy than in a closed economy?