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Business, 02.04.2020 18:16 CameronVand21

Consider an economy described by the following equations:Y = C + I + G + NX, Y = 5,000,G = 1,000,T = 1,000,C = 250 + 0.75(Y – T),I = 1,000 – 50r, NX = 500 – 500e, r = r* = 5.a. In this economy, solve for national saving, investment, the trade balance, and the Equilibrium exchange rate. b. Suppose now that G rises to 1,250. Solve for national saving, investment, the trade balance, and the equilibrium exchange rate. Explain what you find.

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Consider an economy described by the following equations:Y = C + I + G + NX, Y = 5,000,G = 1,000,T =...
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