Question
Consider a small open economy in equilibrium with a zero current account balance. What happens to national saving, investment, and the current account balance in
Consider a small open economy in equilibrium with a zero current account balance. What happens to national saving, investment, and the current account balance in equilibrium if (20 points)
(a) future income rises?
- business taxes rise?
- government expenditures decline temporarily?
- the future marginal product of capital rises?
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Macroeconomics A European Perspective
Authors: Olivier Blanchard, Alessia Amighini, Francesco Giavazzi
4th Edition
1292360895, 9781292360898
