Question

1. Given the following data, answer all questions Y 5000 G-1000 T 1000 C-250+0.75 (Y-T 1000-50 a. Calculate: Consumption Private Saving Public Saving- National Saving Investment- b. Calculate the equilibrium interest rate:r c. Assume G increases to 1,250. Calculate: Consumption Private Saving- Public Saving National Saving- d. Calculate the new equilibrium interest rate: Now open the economy to NX: NX 500-500 E Investment- e. Calculate: Consumption Private Saving = Public Saving- National Saving Investment- The trade balance- Equilibrium exchange rate- f. G increases to 1.250. Calculate: Consumption Private Saving- Public Saving- National Saving- Investment The trade balance
0 0
Add a comment Improve this question Transcribed image text
Answer #1

S00- 100-(3s04.0 15 (-1004 400. (aso+0.45 (400)) ニチSO 1000-1000.。。 500-(as0+0s (500-1000 (000 二子50 -Hence s=1, then

Add a comment
Know the answer?
Add Answer to:
1. Given the following data, answer all questions Y 5000 G-1000 T 1000 C-250+0.75 (Y-T 1000-50...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Question 3 Consider a closed economy described by the following equations: Y=C+I+G Y-5,000 G 1,000 T=...

    Question 3 Consider a closed economy described by the following equations: Y=C+I+G Y-5,000 G 1,000 T= 1,000 C 250+0.75 (Y -T) 1,000-50 a. (3 points) In this economy, compute private saving, public saving, and national saving. b. (2 points) Find the equilibrium interest rate. c. (2 points) Draw a graph containing the saving and investment curves for this economy Show the financial market equilibrium. d. (2 points) Now suppose the G rises to 1,250. Compute private saving, public saving, and...

  • 1. Consider the following economy of Syldavia (a small open economy) Y=C+I+G+NX , NX = S-I...

    1. Consider the following economy of Syldavia (a small open economy) Y=C+I+G+NX , NX = S-I Y=8000 G=750 T=750 C=1000+0.75(Y-T) I=1000-100r NX=500-500e r=r*=5 d. [ 5 points] Suppose the world interest rate drop from r=5 to 2percent (assume government G=750). Find the national saving, investment, trade balance, capital outflow and equilibrium exchange rate.

  • Question 3 Consider a closed economy described by the following equations: Y-C+1+G Y -5,000 G- 1,000...

    Question 3 Consider a closed economy described by the following equations: Y-C+1+G Y -5,000 G- 1,000 T= 1,000 C 2500.75 (Y T) I 1,000-50*r (3 points) In this economy, compute private saving, public saving, and national saving. (2 points) Find the equilibrium interest rate. (2 points) Draw a graph containing the saving and investment curves for this economy. a. b. c. Show the financial market equilibrium d. (2 points) Now suppose the G rises to 1,250. Compute private saving, public...

  • How to solve this problem especially on the b and d this kind of graph question...

    How to solve this problem especially on the b and d this kind of graph question eclass.srv.ualberta.ca Question 2 (15 marks) Consider the following macroeconomic model that describes an Economy: - 1/2 Y =C+I+G Y = 5000 G = T = 1000 C = 250 +0.75(Y-T) 1 = 1000 - 50r a) Calculate the amount of private saving, public saving and the national saving in this economy. b) Calculate the equilibrium interest rate (r). c) Draw a graph containing the...

  • Consider an economy in long run equilibrium described by the following equations: Y = C + I + G +...

    Consider an economy in long run equilibrium described by the following equations: Y = C + I + G + NX Y = 5000 G = 1000 T = 1000 C = 250 + 0.75*( Y - T ) I = 1000 - 50*r NCO = 500 - 50*r Where r is the real interest rate (in % terms). Suppose G rises to 1250 without any change in T. Solve again for the equilibrium real interest rate and the rest...

  • 4. (12 points) Assume that GDP (Y) is 5000. Consumption (C) is given by the equation...

    4. (12 points) Assume that GDP (Y) is 5000. Consumption (C) is given by the equation C = 1200 + 0.3(Y – T) – 50r, where r is the real interest rate, in percent. Investment (I) is given by the equation I = 1500 – 50r. Taxes (T) are 1000, and government spending (G) is 1500. (a) What are the equilibrium values of C, I, and r? Show your work! (Hint: You need to use 3 equations in order to...

  • 21. G increase with algebra. Consider an economy described by the following model. Y = K1/3L2/3...

    21. G increase with algebra. Consider an economy described by the following model. Y = K1/3L2/3 K = 1000; L = 1000 G = 100 T = 100 C = 250 + 0.5(Y-T) 1 = 600 – 100r Calculate the equilibrium real interest rate, national saving, public saving, private saving, consumption, output, and investment. (Hint: you probably don't want to solve for them it in that order.) i.rs ii. national saving = iii. public saving = iv. private saving =...

  • C. Consider an economy described by the following equations: Y = C+I+G+NX K = 2,500 40,000...

    C. Consider an economy described by the following equations: Y = C+I+G+NX K = 2,500 40,000 = K0.5 0.5 = 2000 T = 2000 C = 600+.8 (Y-T) I = 2000 - 40r NX = 1000 - 400€ - 0.002Y T = r = 10 1. [4 points) What is the long-run level of output? 2. [7 points) What is the equilibrium value of the real exchange rate? 3. [9 points) What are the equilibrium values of national saving, investment...

  • 6. An open economy is described by the following equations C = 1000 + 0.6(Y-T) I 20, 000 200r G 5...

    Answer the question (c) 6. An open economy is described by the following equations C = 1000 + 0.6(Y-T) I 20, 000 200r G 5000 T = 5000 MD MS = 60.000 CA = NX = 2000-0.1Y-1000e KA = 5500+ 2(r-r") r"--10 (a) Derive the IS curve (Y as a function of r and e), LM curve (Y as a function of r) and the BP curve (r as a function of Y, e, and the capital mobility parameter z)...

  • 1 of 18 Questions < Assignment Score: 1497/1800 Resources [st Give Up? Feedback Resume Resume 17/100...

    1 of 18 Questions < Assignment Score: 1497/1800 Resources [st Give Up? Feedback Resume Resume 17/100 1 Question 1 of 3 Attempts < Question 1 of 18 > Stacked O O Attempt 1 In Progress 2 Media 100/100 Participation Credit . Y=C+I+G+NX • Y = $5000 . G = $1000 • T = $1150 .C – $200 + 0.65(Y - T) • I = 1000 - 551 • NX = 1128 - 1128€ • r-r* - 6 0/100 3 Question...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT