{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

HW3 - Econ 457 Spring 2010 Problem Set III(Due in class on...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 457, Spring 2010 Problem Set III (Due in class on April 5, 2011) Problems from the textbook: Chapter 16 1, 4, 5, 7, 11, 13, 15, 17 and the following: 1. Using the notation from the lecture notes, answer the following questions. You may assume that net labor income from abroad is zero, there are no capital gains on external wealth, and there are no unilateral transfers. a. Express the change in external wealth (∆ W 0) at the end of period 0 as a function of the economy’s trade balance (TB), the real interest rate (a constant, r *), and initial external wealth ( W _1). b. Using (a), write an expression for the stock of external wealth at the end of period 0 ( W 0). This should be written as a function of the economy’s trade balance ( TB 0), the real interest rate, and initial external wealth ( W _1). c. Using (a) and (b), write an expression for the stock of external wealth at the end of period 1 ( W 1).This should be written as a function of the economy’s trade balance (TB)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 2

HW3 - Econ 457 Spring 2010 Problem Set III(Due in class on...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online