In a small open economy
Sᵈ = $20 billion + ($100 billion)r%
Iᵈ = $30 billion - ($100 billion)r%
Y = $70 billion
G = $20 billion
rʷ = .04.
a.Calculate the current account balance.
b.Calculate net exports.
c.Calculate desired consumption.
d.Calculate absorption.

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The Answer of In a small open economy
Sᵈ = $20 billion + ($100 billion)r%
Iᵈ = $30 billion - ($100 billion)r%
Y = $70 billion
G = $20 billion
rʷ = .04.
a.Calculate the current account balance.
b.Calculate net exports.
c.Calculate desired consumption.
d.Calculate absorption.

In a Small Open Economy