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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Managerial Economics And Financial Analysis
Authors: M.S. Bhat, A.V. Rau
1st Edition
9352300211, 978-9352300211
