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In a small open economy, S = 5 + 100 r w I = 10 - 50 r w , Y = 50 G =
In a small open economy,
S = 5 + 100rw
I= 10 - 50rw,
Y = 50
G = 3
rw = 0.02 (=2%)
(a) Net exports are equal to
(b) Desired consumption is equal to
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