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Assume that the following equations characterize a small open economy: (1) Y = 7,000 (2) Y=C+I+G+NX (3) C = 1000+.70(Y - T) (4) I=900-90r (5) NX=700-700∈ (6) G=1,000 (7) T = 1,000 (8) r=r*=5 where NX is net exports and ∈ is the real exchange rate. (a) What are public saving, private saving, and national saving? Solve these equations for the equilibrium values of C, I, NX, and ∈ . Explain what you find using a graph. (b) Suppose the government of this country decreases taxes by 500. What are public saving, private saving, and national saving? Solve these equations for the equilibrium values of C, I, NX, and ∈ . Explain what you find using a graph.
This is a very random question in my opinion. In many amusement parks, you pay an admission fee to the park but you do not need to pay for individual rides. How do people choose which rides to go on
suppose virginia withdrew 10000 from her bank. if the reserve ratio is 2 percent theen this transaction willl lead to
Both industrial unions and craft unions attempt to raise their members' wages, but each goes about it differently. Explain the diffeence in approaches and describe the impact these differences have on excess quantity of labor supplied.
derive the long-run equilibrium for the dynamic ad-as model. assume there are no shocks to demand or supply t vt 0
Analyse the impact of an increase in the price of crops and a (proportionately smaller) decrease in the price of fuel on a low income person who spends most of her income on food (derived from crops).
Say whether the statement is true, false, or uncertain, and support your answer using concepts discussed in class (only the explanation will be graded and not the T/F choice). If needed, you may do some additional research on these topics.
What is the dollar value of the deadweight loss when output level Q3 is produced? What is the dollar value of the total surplus when output level Q3 is produced?
Individual investors lost millions and the NASDAQ (the stock exchange for most Internet companies) came tumbling down. What happened? Why did it happen? What could have been done to stop this unsafe surge in valuation?
write a release using the direct approach to deliver bad news to a community of stakeholders who care and care quite a
you need to responses to this questions about acawhat provisions of aca are intended to reduce or increase directly the
Three months ago you purchased, at par, a $100,000 bond with a stated interest rate of 5%. Today, the Federal Reserve announced that it is reducing the discount rate by 0.5%.
describe the short term effect in terms of the mix of production inputs and the overall level of output in detail of
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