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Chapter 8 Slide 1 Figure 8-1 page 194 Imports and Exports as a Percentage of Output: 1997 Slide 2 Figure 8-2 page 200 Savings and Investment in a Small Open Economy Slide 3 Figure 8-3 page 201 A Fiscal Expansion at Home in a Small Open Economy Slide 4 Figure 8-4 page 202 Saving, Investment, the Trade Balance, and the Budget Deficit: The U.S. Experience Slide 5 Figure 8-5 page 204 A Fiscal Expansion Abroad in a Small Open Economy Slide 6 Figure 8-6 page 204 A Shift in the Investment Schedule in a Small Open Economy

Chapter 8 (Cont.) Slide 7 Figure 8-7 page 208 Net Exports and the Real Exchange Rate Slide 8 Figure 8-8 page 209 How the Real Exchange Rate is Determined Slide 9 Figure 8-9 page 210 The Impact of Expansionary Fiscal Policy at Home on the Real Exchange Rate Slide 10 Figure 8-10 page 211 The Impact of Expansionary Fiscal Policy Abroad Slide 11 Figure 8-11 page 212 The Impact of an Increase Investment Demand

Chapter 8 (Cont.) Slide 12 Figure 8-12 page 213 The Impact of Protectionist Trade Policies on the Real Exchange Rate Slide 13 Figure 8-13 page 216 Inflation Differentials and the Exchange Rate Slide 14 Figure 8-14 page 217 Purchasing-Power Parity Slide 15 Table 8-1 page 219 Big Mac Prices and the Exchange Rate: An Application of Purchasing-Power Parity Slide 16 Figure 8-15 page 225 How Net Foreign Investment Depends on the Interest Rate

Chapter 8 (Cont.) Slide 17 Figure 8-16 page 225 Two Special Cases The Market for Loanable Funds in the Large Open Economy Slide 19 Figure 8-18 page 227 The Market for Foreign Currency Exchange in the Large Open Economy Slide 20 Figure 8-19 page 228 The Equilibrium in the Large Open Economy Slide 21 Figure 8-20 page 229 A Reduction in National Saving in the Large Open Economy

Chapter 8 (Cont.) Slide 22 Figure 8-21 page 230 An Increase in Investment Demand in the Large Open Economy Slide 23 Figure 8-22 page 231 An Import Restriction in the Large Open Economy Slide 24 Figure 8-23 page 232 A Fall in Net Foreign Investment in the Large Open Economy

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