A large open economy has desired national saving of Sᵈ = 20 + 200 rʷ and desired national investment of Iᵈ = 30 - 200 rʷ.The foreign economy has desired national saving of Sᵈ = 40 + 100 rʷ and desired national investment of ᴵᵈ_For = 75 - 400 rʷ.
a.Calculate the equilibrium values of rʷ,CA,CA_For,S,I,S_For,and I_For.
b.Suppose Sᵈ rises by 45,so that now Sᵈ = 65 + 200 rʷ.Calculate the equilibrium values of rʷ CA,CA_For,S,I,S_For,and I_For.
c.Suppose with Sᵈ back to Sᵈ = 20 + 200 rʷ as in part a,that Iᵈ rises by 45,to Iᵈ = 75 - 200 rʷ.Calculate the equilibrium values of rʷ,CA,CA_For,S,I,S_For and I_For.

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The Answer of A large open economy has desired national saving of Sᵈ = 20 + 200 rʷ and desired national investment of Iᵈ = 30 - 200 rʷ.The foreign economy has desired national saving of Sᵈ = 40 + 100 rʷ and desired national investment of ᴵᵈ_For = 75 - 400 rʷ. a.Calculate the equilibrium values of rʷ,CA,CA_For,S,I,S_For,and I_For. b.Suppose Sᵈ rises by 45,so that now Sᵈ = 65 + 200 rʷ.Calculate the equilibrium values of rʷ CA,CA_For,S,I,S_For,and I_For. c.Suppose with Sᵈ back to Sᵈ = 20 + 200 rʷ as in part a,that Iᵈ rises by 45,to Iᵈ = 75 - 200 rʷ.Calculate the equilibrium values of rʷ,CA,CA_For,S,I,S_For and I_For.

A Large Open Economy Has Desired National Saving of Sᵈ