In a small open economy,Sd = 200 + 500 rw and Id = 300 - 200 rw.If rw = 0.1,then net exports =
A)-50.
B)-30.
C)30.
D)50.

Name: In a small open economy,Sd = 200 + 500 rw and Id = 300 - 200 rw.If rw = 0.1,then net exports = A)-50. B)-30. C)30. D)50.
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Question

Quizplus · Accepted Answer

Net exports (NX) can be calculated using the formula:

NX = Sd - Id

Substituting the given values, we get:

NX = (200 + 500 rw) - (300 - 200 rw)
NX = (200 + 500 x 0.1) - (300 - 200 x 0.1)
NX = 50

Therefore, the correct answer is B) -30.

In a Small Open Economy,Sd = 200 + 500 Rw