Following the 1997 - 1998 monetary crises, the expected productivity of the South-East Asian capital stock declined sharply. What were the effects on South-East Asian investment? For each of the following three cases, derive the expected effects on South- East Asian and U.S. interest rate, saving, investment, and current account balance:
A. South East Asia is closed economy.
B. South-East Asia is small open economy.
C. The world consists of two large economies: South-East Asia and the U.S.