Solve the equations for the equilibrium values of c and i

Reference no: EM13214456

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 - 500? (6) CF = -100r (7) CF = NX (8) G = 1,500 (9) T = 1,000 where NX is net exports, CF is net capital outflow, and ? is the real exchange rate. Solve these equations for the equilibrium values of C, I, NX, CF, r, and ?.

Reference no: EM13214456

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