01

NX NX
•

n n

YnA=Y3A
YAY p Ty ,
>
Y
'

I
'

'
NXIYB , ,Eo ) '

l
NX/Ya , ,¥o )
' '
l
I 1
A
i. 1
,
MPA ? IB 1

A 1 ^
, 1

i in II. MPAI
1

,
MP ,

SÉAV
I
•

A , i
-2 y
LK -
-
•
' l l

ii. it
' l l
,
- - -

,
- -
• 1
I 1
I 1 I

'
l l

l l l

1 ,
ISA ,
Is
> >
Yan YAFYA y Y
. } YIB
let's find out what will
happen if for example ¥ increases in
country A.
[AM If Y rises due to
multiplicity effect
and after COE will be
economy
point ② Where NX > o demand on national A if CBA
-

at excess
, currency
will than F- Will it increases
not
prevent this ,
rise
supply of
currency
A
,
/by being currency B)Yo keep exports and Imports in
country
intact so there will be F- Yin A will not
country change
no in
, change
Export in B is intact as well as interest and YB
, , .

[Y.EC?+cilYa-Ni)tII-bfiI.-iplYa-Ya*D+c-ii-NXa
i P(¥Y¥ Za Marginal propensity to
-

algebra import: in a

ZBYB-ZAYA.mn
.
=) f.
÷÷±÷÷÷÷÷÷ {
.
=

•
 AE ?

gh.fi cit-bp-CI-cit.ir/-+Ii-+GA-bi:+bPYIgyya=Aeit
Gift -113,6¥#
-

for country B it

=) CF -14Pa
1-
is almost same

Ei ZBYB 2- AYA
#
-

a
F- e-

ZBYB-L-AYAYBi.AE? -1GB 1- G
-6K¥ -113,6B¥
I
• ,

[ =
ZB(¥Ep+§¥t¥¥;+p¥+?¥)
✗
E When II. AE? falls
assume that is
positive rises
exchange rate falls and to keep it
intact
CB of A is able to decrease IF ( increase
money supply in terms of LM
) and this will make F- intact

B
nothing happens in
country
,
and E since
s
it
A
=D

Maybe I should

µA=LÉ+kY
)+IÉbi A+G%N
algebra hia
- use different
:
function for NX
so F- Will not

=cÉ+ci(
country A YANT be negative in

some cases

assume E) O
PA-PB-tNXA-zp.YB-za.ua f
assume -

✗ E =p
AE ?
T

|Y=c! -14^1%-4+1?-61¥:Y+¥.fi :/ oink:b)=c ! ci-wt-I.A-c-it-E.fi m :)

Yah
Gina
-

m +
- -

,
A .

{
I
ZBYB ZAYA -

E= ZBYB 2- AYA
f-
-

✗ ✗
~

Aest ¥:(ti :) for country B

ZBAE,+q÷↳)
m

t÷
it
¥:(Li :)

{ya==ZBYBAYA_
¥:(iii. m:) Aejt
-

n
-

e-
ci+q÷ .ba
is almost same
F- =
-

ZA
①
F- y,= AEI -

¥:(E- MY
1- ↳ ✗
¥1.6
+
,

or same if we have LM : M&A , then M ! 9 so sMsa=o

nothing is
change in the equation .

C2 .
Now we have
msn.de or Er
A (Let's use I#
9)
ZB(¥§p*t¥)ZA¥É;+p¥?¥)
[ =

I 9 F- 9
✗ ,
if
,
then
by
I
☒
GAZA is E
NXa-z-piYB-za.Ya-xE-o-j-ZA.LY#i;.sla-x.siI
•

61.02-a ZB ;YB
"
☐
•

✗ ✗
☒ nceleac other
?⃝
 = -
2- A
f- ba) ; /I -
2-
i.
•

ba.in?+ZB;YB--0=3ZBYpo--o--)YB is
unchanged

as well as NX curve in B since

NXIYBI.EE/--NXB/YBz ,

11
YBKYB1
% Nff (
E, > F-to

¥i¥
"

¥=0#se-
each her .

L
YAI
> '

Y
Y Hore
NYA1,¥ ) I NXAIYBI ,
F- a) INXAIYBZ F- e)
,

I N✗BHay¥ ) .

in in
BPnA=BPzA
""
1 .

"" ""
^
MPAA
sit, .

Ez -
-
→ 2 •

3
1
•

i, •
in 1 or 2
-
- - -

•
- -

- - -
- -

BPIS
I

)
☐
ZARE ,¥SA1(Eo IS At
>
SY
a
$
YB2 YBI y
A- F- or Is YIA
since for Isa, (Ea) after rise in F-
,
we have excess of
exports
in A for new
Isa ( , ) win have no excess in
,
E we
exports
for B
unchanged ( NX/Yai ¥.HN/YYAnF=)
Nx will be
country ,
,

no
change in in ,YB .

We have rise in [ A* Which Shifts MPa Up Wards at this

,
We have of in
point 2 an excess
exports trade balance exports will

decrease IS shifts to the left .

,
?⃝