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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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