Question
QUESTION 4 [20 marks]. Using proper equations, complete the following tasks: a. Prove and explain that the multiplier effect is smaller in an open economy
QUESTION 4 [20 marks].
Using proper equations, complete the following tasks: a. Prove and explain that the multiplier effect is smaller in an open economy compared to a closed economy.
b. Prove and explain that the current account balance should be equal to the difference between total savings and investment.
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Systems analysis and design in a changing world
Authors: John W. Satzinger, Robert B. Jackson, Stephen D. Burd
5th edition
9780324593778, 1423902289, 9781305117204, 324593775, 978-1423902287
