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A design-build-operate engineering company burrowed $6 million for 3 years so that in can purchase new equipment. The interest is compounded and the total amount owed will be paid in a single lump sum amount at the end of the 3-year period. The interest at the end of the first year will be $900,000.
a) What is the interest rate on the loan?
b) How much interest will be charged at the end of the second year?
what effect would a rise in the velocity of money have on output, employment and price level?
Q. Consumption function in the IS-LM model? The consumption function will be the same as in cross model, consumption will depend positively on Y. In the classical model, consum
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