) Let us characterize an economy as follows: s =0.15 I 0 =400 G 0 = TX 0 = IM 0 = 0 m = 0.

1.)   Let us characterize an economy as follows:

s =0.15            I0=400        G0= TX0 = IM0 = 0

m = 0.05     EX0 = 600

a)     Find the value of the open economy multiplier

b)     What is the equilibrium level of GDP for this economy?