Question9, 10, T1, 12 and 13 Indonesia's GDP is $120 billion per year, and Indonesia's interest rate is constant at 5% In year 1 Indonesia is hit by a tsunami which causes its income from tourism to drop this year to only $57 billion. Income will recover back to $120 billion in all subsequent years. Assume Indonesian consumers aim to perfectly smooth consumption across all future years, and are able to borrow at an interest rate of 5% from foreigners. PV (r* 0.05) Year GDP-1-57 2 120 120 120 Q9 C Q10 TB Q11 NFIA Q12 FA Question9, 10, T1, 12 and 13 Indonesia's GDP is $120 billion per year, and Indonesia's interest rate is constant at 5% In year 1 Indonesia is hit by a tsunami which causes its income from tourism to drop this year to only $57 billion. Income will recover back to $120 billion in all subsequent years. Assume Indonesian consumers aim to perfectly smooth consumption across all future years, and are able to borrow at an interest rate of 5% from foreigners. PV (r* 0.05) Year GDP-1-57 2 120 120 120 Q9 C Q10 TB Q11 NFIA Q12 FA