Really great job. Thank you so much. I really love it. Thank you so much for all of your help.
Consider an economy where
G=250, T=200 (M/P)d=2Y-8000i (M/P)s =1600
X = 0.3Y*, IM =0.2Y,
ε (real exchange rate) = 2, Y* is foreign output (Y*=900)
d. If government follows an expansionary fiscal policy and G changes by 60, calculate the change in Y for both the closed economy (∆Yclosed) the open economy (∆Yopen). Assume no change in the foreign output (Y*), Calculate the new trade balance.
e. If this economy has flexible exchange rate regime, how would the exchange rate respond to a fiscal expansion policy? Appreciation or Depreciation? Explain why.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more