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Business, 09.10.2021 14:00 engbarthcobie

Consider a small open economy described by the following system of equations: ,,.Letters Y, C, I, G, and NX denote (real) output, consumption, investment, government purchases, and net exports. Letters T, r, r*, and denote the tax, domestic real interestrate, world real interest rate, and real exchange rate. Solve for the equilibrium exchangerate. Discuss the effects of increasing the tax to on the real exchange rate

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Consider a small open economy described by the following system of equations: ,,.Letters Y, C, I, G,...
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