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(1) Suppose: C = 20 + 0.5[0.8Y + Tr] I = 10 - i* IM = 0.15EY X = 0.18-3Y* What is the short run
(1) Suppose: C = 20 + 0.5[0.8Y + Tr] I = 10 - i* IM = 0.15EY X = 0.18-3Y* What is the short run effect of a change in government spending (AG) on net exports of the small open economy if it has a fixed exchange rate? A) -0.2AG B) -0.15AG C) -0.1AG D) -0.05AG E) None of the above
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