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Consider an open economy in which the real exchange rate is fixed and equal to one. Consumption, investment, government spending, taxes, imports, C = 9
Consider an open economy in which the real exchange rate is fixed and equal to one. Consumption, investment, government spending, taxes, imports, C = 9 + 0-9 (y- T) and exports are given by equations to the right. Y\" denotes foreign output. I = 10 Solve for equilibrium output in the domestic economy, G _ 9 given Y". ' . T = 10 Y: + Y' (Round your responses to one dectmal place.) [M = 0.3V EX= 0.4Y*
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