C - is correct
For IS : Y = C + G + I
Y= 170 + 0.6(Y-200) + 350 + 100 - 4i
Y= 500 + 0.6Y - 4i
0.4Y = 500 - 4i
Y= 1250 - 10i
Part 1 of 1 Question 28 of 50 1 Points Suppose that the following equations describe...
Question 75 1 pts Suppose C = 170 +0.60YD, I = 100 - 4i, Md = 0.75Y - 61, MS = 735, P-1, T = 200, G - 350. The equation for equilibrium in the goods market is: Y = 980 +81. Y-1250 + 101 Y = 1250 - 101. OY - 1250 +8i. Y=980-81.
Question 69 1 pts Suppose C - 170 +0.60YD, I = 100 - 4i, Md = 0.75Y - 6i, MS - 735, P-1, T - 200, G = 350. The equation for equilibrium in the financial markets: Y = 1250 - 101. Y = 1250 + Bi. Y = 980 + Bi. Y = 1250 + 101. OY-980 - 8i.
Question 82 1 Suppose C 170 + 0.60YD, I 100- 4i, Md 0.75Y-6i, MS 735, P 1, T = 200, G = 350. The equilibrium level of output (Y), the interest rate (i), investment (I) and consumption (C) are, respectively: Y=1200; i - 15;1- 20; C 710. Y=1100; i = 5; I = 40; C = 700. Y-1100; i- 15;I-40; C 710. Y-1200; i = 15; I = 40; C = 710. OY-1000; i- 10;1-40; C =600.
9.9. The following equations describe an economy: C = 2000 +0.75 (Y - T) Ip = 600 - 50r G = 500 NX = 0 T= 400 Md/P = 0.25 Y - 50r Ms/P = 500 What is the equation that describes the IS curve? a. Y = 11200 - 200 r. b. 2800 +0.75Y - 50 r C. Y = 2800 - 50 r d. Y = 2000 + 200 r (4 Points) Enter your answer
Suppose that the following equations describe an economy. Y = Cd + Id + G Cd = 180 + 0.8(Y – T) Id = 140 – 8r + 0.1Y T = 400 G = 400 (Md/P) = 6Y – 120i MS = 6000 i = πe + r Assume expected inflation πe = 0 and price level P = 1. Find the equation for the IS curve. Find the equation for the LM curve. Find the equilibrium values for output...
Assume the following equations for the goods and money market of an economy: C = 250 + .8(Y-T) I = 100 - 50r T = G = 100. Ms = 200 Md = 0.2Y – 100r a) Write the equation of the IS curve for this economy. Is this upward or downward sloping? The IS curve is written as Y = _ +/- _r. (6 points) b) If T falls to 50 and everything else remains the same, write the...
Question 6 Consumption C = 50 +0.7Yd Income tax t = 0.3Y Investment |= 600 - 30r Government expenditure G = 300 Md = Y-50r, Ms = 1040, P = 2 Derive the IS and LM equations and find the equilibrium levels of income and rate of interest. E BI U A- A - IE * 1 1 1 XX, B. va G 1 12pt - Paragraph - Ⓡ Question 6 Consumption C = 50 +0.7Yd Income tax t =...
Part 2: Questions from the Instructor 1. The following equations describe the macro-economy: Consumption function: C = 50 + 0.5 (Y-T) Government spending: G = 100 Real Money supply: M/P 100 Real Money demand: Md/P-2Y-20000/ Taxes: T 0.2Y Investment: 200- 10000i Notice that taxes are no longer fixed: they are proportional to the amount of income. a) Derive the IS and LM curves. b) Calculate the equilibrium output and interest rate. c) At the equilibrium, is the government having a...
Suppose that the economy is characterized by the following behavioral equations: C= 130 + 0.8Y 1 = 170 G = 150 T = 100 Equilibrium output (Y) = (Round your response to the nearest integer.)
Problem 4: (30 points) The following equations describe an economy (Think of C, I, G etc., as being measured in billions and i' as a percentage; a 6 percent interest rate implies i =6): C = 100+0.75(1-t)Y t=0.2 I= 150 - 301 NX = -100 G = 400 L = 2Y - 80i M B = 1600 a. What is the equation that describes the IS curve? (10 points) b. What is the general definition of the IS curve? (2...