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Desired consumption is Cd = 2000 + 0.9Y - 100,000 r - G, and desired investment is Id = 1000 - 45,000r. Real money demand is Md/P = Y - 6,000i.
Other variables are πe = 0.03, G = 500, Y "constant"= 1000 and M = 2,100.
a. Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
Suppose government purchases decline to 400. What happens to the variables listed in part (a)?
Suppose government purchases rise to 600. What happens to the variables listed in part (a)? What feature in this example leads to the result that you don't need to know the amount of taxescollected by the government to find the equilibrium?
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Illustrate a supply or demand curve shift for the following article-The majority of grain and oilseed futures are traded on the Chicago Board of Trade (CBOT). Government estimates released on Monday, January 12, 2009 sent CBOT grain and oilseed
The impact of changing from a federal income tax to a federal consumption tax would be:
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Before September 1992, the lira or DM exchange rate could fluctuate through up to 2.25% up or down. If central banks ensured that the lira or DM exchange rate band was set in this way and could not be changes,
Explain a situation in which a increase in the value level increases interest rates, lowers consumption, and leads to lower investment in capital goods.
Elucidate how tax credit to a business would help to stimulate the economy.
A company in the US develops and patents a technique to produce low cost computer chips: Which account is impacted by this.
A marketplace has only two sellers. Both are trying to decide on a pricing strategy.
Find out an article which is related to health economics from health journal. Some possible sources include Health Affairs
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