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Consider a closed economy, where the price level P is constant and equal to 4.You are given the following additional information: C = 1,000 + 0.8(Y - T) T = 0.25Y - 100 I = 3,000 - 1,000r G = 500 L = 20,000r M = 6,400 A.What is the equilibrium level of income? What is the equilibrium level of the interest rate? Explain how you obtained your answers. B. The public increases its demand for money such that L = 30,000r. The Bank of Canada responds by increasing the money supply such that M = 9,600. What is the equilibrium level of income? What is the equilibrium level of the interest rate? Explain how you obtained your answers. C. Compare the equilibrium level of income for Part A with the equilibrium level of income for Part B. Explain why this result has occurred.
Tariffs and quotas can be used to achieve similar ends. In fact, for any given quota, there is an equivalent tariff that will limit imports to exactly the same amount. Still, there are differences between quotas and tariffs.
There are four of you in a group- representing the individuals with currency in an economy. Each of you has $100. Use this information to answer the following questions. Additionally, all banks abide by a reserve ratio of (1/5), regardless of scenari..
what closing time should citywide spirits shoppe choose to maximize profits? calculate the increase in profits
Which of the following is a production decision?
Discuss how pricing affects consumer purchasing, particularly the purchasing trends of individual households
Created by Dr. Florence Neymotin, Which three states had the largest (positive) change in average weekly earnings over this time period (remember to use the correct units in your answer)?
Eve bought defective ball bearings from Saginaw Corp. Alfred was the sole shareholder of the company and also its landlord. After Alfred sold all Saginaw's assets, he withheld enough money to cover the rent that Saginaw owed him. As a result Sagin..
Third National Bank is fully loaned up with reserves of $20,000 and demand deposits is similar to $100,000. The reserve ratio is 20 percent.
1. assume that a monopolist has a demand curve given by p 1500 - 4q and tc 100 5q2 with mc 10q.a if the firm
What are some costs of unemployment
you have just started work for a small company fitco that develops private fitness clubs in small towns. fitco buys or
suppose youre trying to sell a company a new accounting system that will reduce costs by 10. instead of asking for a
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