S10 MyCh13R

S10 MyCh13R - Ch 13 Review 2 r $ S(r Y ° – I(r NX(r Y °...

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Unformatted text preview: Ch. 13 Review 2 r $ S(r; Y ° ) – I (r) NX(r; Y ° ) Y ° → Y ° + ∆ Y Open economy IS – 1) Derivation 3 r $ S(r; Y ° ) – I (r) S(r; Y ° + ∆ Y) – I (r) NX(r; Y ° ) Open economy IS – 1) Derivation Y ° → Y ° + ∆ Y Richer country saves more 4 r $ S(r; Y ° ) – I (r) S(r; Y ° + ∆ Y) – I (r) NX(r; Y ° ) NX(r; Y ° + ∆ Y) Open economy IS – 1) Derivation Y ° → Y ° + ∆ Y Richer country exports less 5 r $ r Y S(r; Y ° ) – I (r) S(r; Y ° + ∆ Y) – I (r) NX(r; Y ° ) NX(r; Y ° + ∆ Y) Open Economy I S Y ° Y ° + ∆ Y Y ° → Y ° + ∆ Y Richer country has lower real interest Open economy IS – 1) Derivation 6 Open economy IS – 2) Variation: a. impact at home S(r; Y, .) – I(r) NX(r; Y, .) Open economy IS 7 Open economy IS – 2) Variation: a. impact at home S(r; Y, .) – I(r) NX(r; Y, .) Open economy IS Temporary increase of G Government spending crowds out saving 8 Open economy IS – 2) Variation: a. impact at home S(r; Y, .) – I(r)S(r; Y, ....
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This note was uploaded on 06/01/2010 for the course ECON 3140 at Cornell.

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S10 MyCh13R - Ch 13 Review 2 r $ S(r Y ° – I(r NX(r Y °...

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