Calculate national saving and investment in equilibrium


Consider a small open economy with desired national saving of Sd = 20+200rw and desired investment of Id=30-200rw. Calculate national saving, investment, and the current account balance in equilibrium when the real world interest rate is

(a) rw=0.025.

(b) rw=0.05.

(c) rw=0.0.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Calculate national saving and investment in equilibrium
Reference No:- TGS065892

Expected delivery within 24 Hours