3. In a small open economy, desired national saving, sd == $10 billion + ($100 billion)rw; desired investment, I d == $15 billion - ($100 billion)rw; output, Y == $50 billion; government purchases, G == $10 billion; world real interest rate, rw == 0.03.

a. Find the economy's national saving, investment, current account surplus, net exports, desired consumption, and absorption.

b. Owing to a technological innovation that increases future productivity, the country's desired investment rises by $2 billion at each level of the world real interest rate. Repeat Part

(a) with this new information.