Home » Assume that the following equations characterize a large open economy:

# Assume that the following equations characterize a large open economy:

Assume that the following equations characterize a large open economy:(1) Y = 5,000(2) Y = C + I + G + NX(3) C = 1/2(Y – T)(4) I = 2,000 – 100r(5) NX = 500 – 500ε(6) CF = –100r3(7) CF = NX(8) G = 1,500(9) T = 1,000.Where NX is net exports, CF is net capital outflow, and ε is the real exchange rate.Solve these equations for the equilibrium values of C, I, NX, CF, r, and ε. (Hint:Substitute equations (9) and (1) into (3), then substitute (1), (3), (4), (8), and (5) into(2). Then substitute (5) and (6) into (7). Now you have two equations in r and ε.Check your work by seeing that all of these equations balance given your answers.)

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

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.

### Money-back guarantee

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.

### Zero-plagiarism guarantee

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.

### Free-revision policy

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.