) Consider the following economy: s = 0.2m =0. | Cheap Nursing Papers
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) Consider the following economy: s = 0.2m =0.

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1.)   Consider the following economy:

s = 0.2m =0.2    I0 =500   G0 = 250

TX0= 200       EX0 = 400

a)     Find the value of the open economy multiplier

b)     What is the equilibrium level of GDP for this economy?

c)     What is the initial current account balance for this country?

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