Copyright©2004 South-Western 32 A Macroeconomic Theory of the Open Economy.

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Copyright©2004 South-Western 32 32 A Macroeconomic Theory of the Open Economy
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Transcript of Copyright©2004 South-Western 32 A Macroeconomic Theory of the Open Economy.

Page 1: Copyright©2004 South-Western 32 A Macroeconomic Theory of the Open Economy.

Copyright©2004 South-Western

3232A Macroeconomic

Theory of the Open Economy

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Figure 1 The Market for Loanable Funds

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Figure 2 The Market for Foreign-Currency Exchange

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Figure 3 How Net Capital Outflow Depends on the Interest Rate

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Figure 4 The Real Equilibrium in an Open Economy

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Figure 5 The Effects of a Government Budget Deficit

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Figure 6 The Effects of an Import Quota

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Figure 7 The Effects of Capital Flight