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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S10 MyCh13R - Ch. 13 Review 2 r $ S(r; Y ) I (r) NX(r; Y )...

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