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Need the entire solution. 1. Suppose the world consists of two open economies: domestic economy and foreign economy. Domestic economy has desired national saving of

Need the entire solution.

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1. Suppose the world consists of two open economies: domestic economy and foreign economy. Domestic economy has desired national saving of Sd=30 + 1507", and desired national investment of I - 20 - 180 7". The foreign economy has desired national saving of Sfor = 40 + 120 7", and desired national investment of Ifor = 60 - 300 rw.. (a) Calculate the equilibrium values of FW, CA, CAfor, Sd, Id, Sfor , and Ifor." (b) Suppose rises by 30, so that now S = 60 + 150. Calculate the equilibrium values of " , CA, CA, So, Id Sfor, and Ifor."

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