There are two countries A and C with free trade between them. The aggregate investments in country

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There are two countries A and C with free trade between them.

The aggregate investments in country A are:

IA=Aar

whereA,a>0 andr is real interest.

The aggregate investments in country C are:

IC=Ccr

where C,c>0.

The countries have total savings SAand SCwhich do not depend on/change with r.

Question: Derive the condition for country A to be a net-exporter.

Posted Date: Jun 21, 2024 06:04 PM

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There are two countries A and C with free trade between them. The aggregate investments in country

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