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categoryالإدارة والاقتصاد schoolبكالوريوس event_available2026-07-15

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Consider two economies: Home C-200+0.4(Y-T)-250r" I-245-150rw T=200 G-300 ROW C-400+0.4(Y-T)-350r™ I-205-250r™ T=300 G=400 a) Suppose that the home country is a closed equilibrium. Draw graphically and calculate what the equilibrium interest rate, savings, investment, and net exports in terms of Y (for any Y). b) Suppose that the home country is a small open equilibrium and the world interest rate is 10%. Draw graphically and calculate what the equilibrium interest rate, savings, investment, and net exports. Assume a GDP of 2000 for home country and ROW. c) Suppose with the small open equilibrium the home country increases their taxes by 50 units. Draw graphically and calculate what the equilibrium interest rate, savings, investment, and net exports. d) Suppose that the home country and ROW are the two large economies. What is the equilibrium world interest rate? Draw graphically and calculate what the savings, investment, and net exports are for the home country and the ROW.

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