Re: SAU PAPER

Posted by jack on Mar 31, 2014; 6:14pm
URL: http://discussion-forum.276.s1.nabble.com/SAU-PAPER-tp7585693p7585857.html

X=.6y*
M=.3Y
so, X/M=.6Y*/.3Y
for trade balance to hold,
ratio of foreign output to domestic output should be 1/2