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Info needed to answer question. Prior to change - r w = .05 Home Country S d = 255 I d = 210 NX= 45

Info needed to answer question.

Prior to change -

rw= .05

Home Country

Sd= 255

Id= 210

NX= 45

Foreign Country

Sd= 95

Id= 140

NX=-45

G rises by 50 to 325.

After change -

rw= .1

Home Country

Sd= 270

Id= 195

NX= 75

F Country

Sd= 55

Id= 130

NX= -75

QUESTION: What happened to the trade balance for the foreign country and did the increase in G ' crowd out' private investment? If so, how much private investment was crowded out? Show work and explain...

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