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Consider an economy described by the following equations: Y = C + I + G + NX Y = 8,100 G = 2,300 T =
Consider an economy described by the following equations: Y = C + I + G + NX Y = 8,100 G = 2,300 T = 2,100 C = 500 + 2/3 (Y - T) I = 900 - 50r NX = 1,500 - 250e r = r* = 8. a. In this economy, solve for private saving, public saving, national saving, investment, the trade balance, and the equilibrium exchange rate. b. Suppose now that G is cut to 2,000. Solve for private saving, public saving, national saving, investment, the trade balance, and the equilibrium exchange rate
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