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Consider an open economy characterized by the equations below. C=Co+C1(Y-T) I=do+d1Y IM=m1Y x=X1y* The parameters m1 and X1 are the propensites to import and export. Assume that the real exchange rate is fixed at a value of 1 and treat foreign income Y* as fixed. Also that taxes are fixed and that government purchases are exogenous (i.e. decided by the government). We explore the effectiveness of changes in G under alternative assumptions about the propensity to import.
QA: Write the equilibrum condition in the market for domestic goods and solve for Y.
QB:Suppose govermnet purchases increase by one unit. What is the effect on output? (Assume that 0)
Movies and videos provide opportunities for critical reflection and the development of media literacy. This activity will provide you with the opportunity to practice being a critical consumer of films as a form of media.
A. If the interest rate is 35%, what is the maximum you can spend in the current period B. If the interest rate was lower, you probably would be able to spend more than that. What would be the maximum interest rate that would allow you to spend $2..
A certain processing center has the capacity to assemble 650,000 units per year. At present, it is operating at 65% of capacity. The annual income is $416,000. Annual fixed cost is $192,000 and the variable cost is $0.38 per unit assembled.
Vincent van Gogh can produce paintings at constant marginal cost cV V G = 1. The population of buyers of VVG paintings is grouped into two categories: Serious Art Collectors (SAC) and Casual Art Collectors (CAC). The SAC to CAC population ratio is..
Determine the economic activity that takes place in Underground Economy have any impact upon any Economic Indicator.
Suppose that velocity is constant and the economy's output of goods and services rises by 5 percent each year. What will happen to nominal GDP and the price level next year if the Fed keeps the money supply constant.
High performance Bicycle products company in Chapel Hill, North Carolina, sampled its shipping records for a certain day with these results: Time form Recepit of order to delivery ( in days)
A person has an expected utility function of the form U(w)=w^1/2.He has an initial wealth of $25.He also has a lottery ticket that will be worth $75 with probability 1/2 and will be worth $0 with probability 1/2.
Carnack contracts to sell his house and lot to Willard for $100,000. The terms of the contract call for Willard to pay 10% of the purchase price as a deposit toward the purchase price, or as a down payment.
Real Disposable Income Planned Real Consumption 0 3,000 2,000 4,400 4,000 5,800 6,000 7,200 8,000 8,600 10,000 10,000 12,000 11,400 14,000 12,800 Refer to Table 12.1. The table gives the combinations of income and consumption.
How much money was deposited each year for 10 years if the account is now worth $500,000 and the last deposit was made 8 years ago Assume the account earned interest at 8% per year.
The first payment is due one year from today. The government plans to invest the funds until the final payment is collected and then donate the entire amount, including investment earnings, to a national health center.
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