Unformatted text preview: for the whole world. Show the world equilibrium price and show production points, consumption points and indifference curves for each country given the world equilibrium price. Part B: Suppose Home experiences an export-biased growth. Redo part A. Show the change of Home’s terms of trade (TOT), higher or lower than before? Does this export-biased growth help or hurt Home’s TOT? What about Foreign’s? Explain....
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This note was uploaded on 10/25/2011 for the course ECONOMICS 300 taught by Professor Sani during the Spring '11 term at Rutgers.
- Spring '11
- International Economics