Please double-check if this is correct Savings and Investment - Open Economy Sup

Question

Please double-check if this is correct

Savings and Investment - Open Economy Suppose that Westeros continues to run a large trade deficit with the Bravos. Consider Westeros and Bravos, as the only two countries in the world and both are large open economies. Construct three diagrams showing savings, investment, net capital outflows and net exports in Bravos, Westeros, and the World market. Be sure to label everything, including the real world interest rate, and explain how the three graphs are related. Redraw and show what happens in all graphs with a decrease in current income in Bravos. Be sure to tell/show me what happens to savings and investment in each country.

Explanation / Answer

Question A and B is fine as it showns the fall in income leading to fall is supply due to postive relation. Be sure to mark the changes in equilibrium in question b diagrams.

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