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Consider the following model: C=20+0.5(Y-T) I=20-10r T=0 G=50 QUESTIONS: a) Obtain the equation of the IS curve. What is the slope of the curve? Calculate output if r=0.1 b) Suppose now that autonomous consumption increases to 30. What happens to the IS curve? Show your results in a graph. c) Suppose now that there is a change in marginal propensity to consumption so that now c1=0.6. What happens to the IS curve? Show your results in a graph.
A US Treasury Security is paying an interest rate of 1.18 percent for a 1 year zero coupon bond. The country of Benin is also giving a 1 year zero coupon bond. There is a probability of 0.05 that Benin will default and pay you back nothing (r=-1). Ot..
Analyze the current macro economic situation and discuss changes in economic, financial and international conditions in the near future.
explain why the actual increase in M-1 will be smaller than that indicated by the over smplified multiplier.
it can sell its output for $25 each. Illustrate what is break-Explain how your work both graphically and algebraically.
q.electoral college system take a country named know land that has. suppose there are 9 small states in know land where
The production function for puffed rice is- Calculate the Q = 1000 isoquant for this production function and show it on a graph. If K = 10, how many workers are required to produce Q = 1,000? What is the average?
Provide an example for each about decision-making, interaction and workings of economy. Explain how that influences marginal benefits and marginal costs associated with decision to purchase a house.
Prove utilizing a graph, that a diagonal line through the original would intersect each indifference curve once.
Stanley's profit-maximizing output, price, and profit if he were allowed to set his own price instead of having to charge $0.80.
Suppose Janet has an "appetizer budget" of $165 per week, which she spends on cheese and fruit. To maximize her utility, Janet will purchase.
Illustrate what is maximum amount you would pay for offer of $2,000. Suppose offer was $2,000, but delivery was to be in 2 years instead of 1 year. Illustrate what is maximum amount you would be willing to pay.
Assume an American company sells $10 million in goods to a German firm. The American company will receive less than $10 million in revenues if (assume no transactions to prevent exchange rate risk):
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