Qdesired consumption is 100 08y - 500r - 05g and desired

Assignment Help Business Economics
Reference no: EM13351973

Q. Desired consumption is = 100 + 0.8Y - 500r - 0.5G, and desired investment is = 100 - 500r. Real money demand is /P = Y - 2000i. Other variables are = 0.05, G = 200, = 1000, and M = 2100.

(A) Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
(B) Suppose the money supply increases to 2800. Find the equilibrium values of the real interest rate, consumption, investment, and the price level. (Assume that the expected inflation rate is unchanged.)

 

Reference no: EM13351973

Questions Cloud

Q1 a firm that finds it extremely expensive to monitor the : q1. a firm that finds it extremely expensive to monitor the output of each worker will likely pay its workersq2. which
Qwhich of the government policies below is not likely to : q.which of the government policies below is not likely to encourage per capita economic growth?in the latter end of
Q a county is considering using a piece of park land for : q. a county is considering using a piece of park land for one of two alternative recreation projects. project s would
Qhiro nakamura is ceo of the cola king bottling company a : q.hiro nakamura is ceo of the cola king bottling company a small regional producer operating in the pacific northwest.
Qdesired consumption is 100 08y - 500r - 05g and desired : q.desired consumption is 100 0.8y - 500r - 0.5g and desired investment is 100 - 500r. real money demand is p y -
Qsuppose you want a lump sum payment of 100000 three years : q.suppose you want a lump sum payment of 100000 three years from now. rounded to full dollars how many current dollars
Q1 why do proponents of active policy recommend government : q1. why do proponents of active policy recommend government intervention to close an expansionary gap? briefly
Q1 compare and contrast the way classical and keynesian : q1. compare and contrast the way classical and keynesian theory determine the demand for money and how it is related to
Q1 currently there is an incumbent monopoly in a market a : q1. currently there is an incumbent monopoly in a market. a potential entrant may enter. the incumbent can spend x

Reviews

Write a Review

Business Economics Questions & Answers

  Find mean and standard deviation of an employee

The amount of money generated in a week can be viewed as a random variable with a mean of $700 and a standard deviation of $130. Find mean and standard deviation of an employee's total pay in a week.

  Explain why moodys decreasing the risk for these countries

Explain why moody's decreasing the risk for these countries for example BBB BH and Cairo BBB how create this action by international instiutions effect international.

  Explain how many days will he choose to stay in the hospital

If David's only illness this year results in an appendectomy, explain how many days will he choose to stay in the hospital.

  What is the effective borrowing rate on this home mortgage

What is the effective borrowing rate on this home mortgage loan?

  To make your work easier to grade

To make your work easier to grade, please make Julie the row player, Kristin the column player also Larissa the page player.

  Illustrate what is the price elasticity of labor supply

Suppose a wage increase from $25 to $27 an hour increases the number of job applicants from 52 to 66. Illustrate what is the price elasticity of labor supply.

  Illustrate what are costs associated with this non-native

Illustrate what are the costs associated with this non-native species.

  Intermediaries come from a competitive marketplace

change if buyers pay $8 every unit to the intermediary but sellers offer to rebate part of that expense to buyers.

  Explain how much total pollution reduction

Explain how much total pollution reduction will occur under proposal A and what be will the total compensation received by regions O and R.

  What will be the value of your investment years from now

suppose that you invest $100 today in a risk-free investment and let the 4 percent annual intrest rate compound. Rounded to the full dollars, what will be the value of your investment 4 years from now?

  What would be price and profit levels would prevail based

What would be price and profit levels would prevail based on the assumption that a new entry into the local market results in competitive market pricing.

  Elucidate the fact that the cross-price elasticity

Elucidate the fact that the cross-price elasticity of natural gas with respect to the price of fuel oil.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd