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

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

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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

Page 2: Copyright©2004 South-Western 32 A Macroeconomic Theory of the Open Economy

Copyright©2004 South-Western

Figure 1 The Market for Loanable Funds

Page 3: Copyright©2004 South-Western 32 A Macroeconomic Theory of the Open Economy

Copyright©2004 South-Western

Figure 2 The Market for Foreign-Currency Exchange

Page 4: Copyright©2004 South-Western 32 A Macroeconomic Theory of the Open Economy

Copyright©2004 South-Western

Figure 3 How Net Capital Outflow Depends on the Interest Rate

Page 5: Copyright©2004 South-Western 32 A Macroeconomic Theory of the Open Economy

Copyright©2004 South-Western

Figure 4 The Real Equilibrium in an Open Economy

Page 6: Copyright©2004 South-Western 32 A Macroeconomic Theory of the Open Economy

Copyright©2004 South-Western

Figure 5 The Effects of a Government Budget Deficit

Page 7: Copyright©2004 South-Western 32 A Macroeconomic Theory of the Open Economy

Copyright©2004 South-Western

Figure 6 The Effects of an Import Quota

Page 8: Copyright©2004 South-Western 32 A Macroeconomic Theory of the Open Economy

Copyright©2004 South-Western

Figure 7 The Effects of Capital Flight