Question
Suppose that an economy starts with a net foreign asset to GDP ratio (NFA/Y) equal to -30%. After one year, the real interest rate (difference
Suppose that an economy starts with a net foreign asset to GDP ratio (NFA/Y) equal to -30%. After one year, the real interest rate (difference between the nominal interest rate and the inflation rate) has been -10%. What will the NFA/Y ratio become after this year due to this effect? Give your answer with two decimal places.
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Microeconomics Principles, Problems, And Policies
Authors: Campbell McConnell
21st Edition
1259915727, 9781259915727
