(Solved): ts The figure below shows the savings and investment curves for a small economy. Use the figure to a ...

ts The figure below shows the savings and investment curves for a small economy. Use the figure to answer the next four questions a) What is the equilibrium interest rate? At the equilibrium interest rate, what is national savings and investment? 2 points b) What is the value of Calculate net exports and the capital outflow when the world real interest rate is 7%. b) Calculate net exports and the capital outflow when the world real interest rate is 5%. Real Interest Rate, r 7% 5% CE b 500 600 Saving Curve Investment Curve 800 1.000 1,100 Desired Saving and Investment (in billions of dollars)