Last questions please Consider an economy described by the following: C = $3.25 trillion 1 =...
Consider an economy described by the following: c = $3.25 trillion 7 = $1.4 trillion G = $3.5 trillion T = $3 trillion NX = $-0.5 trillion 7= 1 mpc = 0.7 d = 0.4 x = 0.15 U D . = 3.25 +(1-0.7 )Y. The simplified expression for the investment function is: O A. 1 = 3.25 -0.4r. OB. 1 = 1 -0.7r. OC. 1 = 3.25 -0.7r. D. 1 = 1 -0.4. The simplified expression for the net...
Please provide a clear step-by-step explaination on finding the expression of the IS curve. Others have answered it but they just give the final result and I still dont know how to do it. Nevermind. i figured it out. ? Date: 10/29/19 2019 14. Consider an economy described by the following T = $3.2 trillion 1 = $1,4 trillion G = $3.5 trillion T = $3 trillion NX = 5-0.5 trillion T= 1 mpc = 0.7 d = 0.3 X=0.15...
Please help with "An expression for the IS curve" and the 4 questions under it. Thanks. 14. Consider an economy described by the following: C $3.3 trillion 7 $1.4 trillion G $2.8 trillion T $3 trillion 7-1 mpc 0 75 d 0.3 x 02 NX = $-1 trillion The simplified expression for the consumption function is: OA. C 1.05+ (1-0.75)Y B. C 1.05+0.75Y O C. C 3.3+(1-0.75)Y O D. C 3.3+0.75Y The simplified expression for the investment function is A.,...
Consider the following data for a closed economy Y = $12 trillion C = $8 trillion = $2 trillion G = $2 trillion TR = $2 trillion T= $3 trillion Refer to the scenario above. Based on the information above, what is the level of public saving? O A. $0 O B. $1 trillion OC. $2 trillion O D. negative $1 trillion (a deficit of $1 trillion)
Consider the following data for a closed economy: Y $12 trillion C $8 trillion G $2 trillion Spublic $-0.50 trillion T $2 trillion Now suppose that government purchases increase from $2 trillion to $2.60 trillion but the values of Y and C are unchanged. What must happen to the values of S and 1? O A. S drops by $0.60 trillion and I increases by $0.60 trillion O B. S and I drop by $0.60 trillion O C. S and...
Question 4 4. Consider the following information for a closed economy. Y = $12 trillion, C = $8 trillion, G = $2 trillion, Spublic $-0.5 trillion and T = $2 trillion. 1. What is private savings for this economy? 2. What is investment spending for this economy? 3. What are the transfer payments for this economy? 4. Is there a government budget defcit or surplus for this economy?
End of Chapter A.3 Consider the macroeconomic model shown below: C = 750 +0.50Y 1 = 2.000 G = 1,500 NX = 100 Y=C+I+G+ NX Consumption function Planned investment function Government spending function Net export function Equilibrium condition Fill in the following table. (Enter your responses as integers.) Aggregate Expenditures (AE) GDP 4.350 Unplanned Change in Inventories 13.050 Enter your answer in the edit fields and then click Check Answer All parts showing Clear Al Check And
Consider an economy that is described by the following classical model. Y = AxK"XL(1-a). (A = 1.355, α = 0.33) C = 10 + 0.55 * (Y-T) 2r K-10, L = 30 (a) In this economy compute the equilib- rium interest rate r (b) Compute the MPC of the consumption function.2 (c) Calculate the equilibrium interest rate when = T-5.5.
2. Consider the following short-ru model of an open economy: Y C+I+G+NX = 50 IM = -EY The domestic and foreign prices are constant and normalized to one ((p p" 1), and the nominal exchange rate equals the real exchange rate. (a) The policy makers have an output target, YT 200, and a net- export target, NXT = 0' Show how these targets can be achieved using government consumption (G) and the exchange rate (E) as policy instruments (b) Now...
1. Consider the following consumption function and the national income identity. C=0.01Y2 +0.8Y+200 Y=C+S Where, C is consumption and Y is national income, and S is saving a) Calculate the value of marginal propensity to consume (MPC) when Y=8 b) Find the expression for savings function and using that function calculate marginal propensity to save (MPS) when Y= 8.