A large open economy has desired national saving of Sd = 1200 + 1000rw,and desired national investment of Id = 1000 - 500rw.The foreign economy has desired national saving of = 1300 + 1000rw,and desired national investment of = 1800 - 500rw.Suppose the foreign country's government increases its spending by 300 and private saving does not change.Then in equilibrium,the foreign country has net exports equal to
A)500.
B)350.
C)-350.
D)-500.

Question

A large open economy has desired national saving of Sd = 1200 + 1000rw,and desired national investment of Id = 1000 - 500rw.The foreign economy has desired national saving of  = 1300 + 1000rw,and desired national investment of  = 1800 - 500rw.Suppose the foreign country's government increases its spending by 300 and private saving does not change.Then in equilibrium,the foreign country has net exports equal to
A)500. 
B)350. 
C)-350. 
D)-500.

Quizplus · Accepted Answer

The Answer of A large open economy has desired national saving of Sd = 1200 + 1000rw,and desired national investment of Id = 1000 - 500rw.The foreign economy has desired national saving of  = 1300 + 1000rw,and desired national investment of  = 1800 - 500rw.Suppose the foreign country's government increases its spending by 300 and private saving does not change.Then in equilibrium,the foreign country has net exports equal to
A)500. 
B)350. 
C)-350. 
D)-500.

A Large Open Economy Has Desired National Saving of Sd