Answer all the questions in the attachment provided, including any diagrams that the questions require.1
An international economy
Consider an economy which is characterised by the following equations:
Co,C1 > 0
q,6 > 0
C = co +cYd
I =ī+qYp – br
G=G
T=0
X = eY*
Im =gY] + he
e> 0
g, h > 0
where Ī, G, T are exogenously given and Co, C1,9,b, e, f, g, h are parameters; 0
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