In a small open economy,
S^d = $5 billion + ($100 billion)r^w,
I^d = $10 billion - ($50 billion)r^w,
Y = $50 billion,
G = $3 billion,
r^w = .06.
(a)Calculate the current account balance.
(b)Calculate net exports.
(c)Calculate desired consumption.
(d)Calculate absorption.

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The Answer of In a small open economy, S^d = $5 billion + ($100 billion)r^w, I^d = $10 billion - ($50 billion)r^w, Y = $50 billion, G = $3 billion, r^w = .06. (a)Calculate the current account balance. (b)Calculate net exports. (c)Calculate desired consumption. (d)Calculate absorption.

In a Small Open Economy