Question

Question 7 2 pts In an economy, the investment function is given by I = 1,200 - 100r If national savings is equal to 426, wha
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solutions In an investment function is given economy by - I = 1200 - 1007 National savings (S) = 426 Equilibrium real interes

Add a comment
Know the answer?
Add Answer to:
Question 7 2 pts In an economy, the investment function is given by I = 1,200...
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
  • Suppose that in a closed economy, savings is 1,309. If the investment function is given by...

    Suppose that in a closed economy, savings is 1,309. If the investment function is given by I = 1500 – 10r what is the real interest rate? Round to the nearest two decimal place.

  • as Suppose that in a closed economy, savings is 1,149. If the investment function is given...

    as Suppose that in a closed economy, savings is 1,149. If the investment function is given by I = 1500 - 10r what is the real interest rate? Round to the nearest two decimal place. er Online

  • The income identity for a closed economy says that Y-C+I+G Assume that in the Economy of...

    The income identity for a closed economy says that Y-C+I+G Assume that in the Economy of Berkeley GDP (Y) is equal to 6,000 and consumption (C) is given by the equation C 600+0.6(Y - T). In addition, investment (I) is given by the equation 1 2, 000-100r where r is the real of interest rate in percent. Taxes (T) are 500 and government spending (G) is also 500. What are the equilibrium values of C, I, and r?

  • The income identity for a closed economy says that Y = C+I+G Assume that in the...

    The income identity for a closed economy says that Y = C+I+G Assume that in the Economy of Berkeley GDP (Y) is equal to 6,000 and consumption (C) is given by the equation: C = 600 + 0.6(Y-T) In addition, investment (I) is given by the equation I = 2,000 - 100r where r is the real of interest rate in percent. Taxes (T) are 500 and government spending (G) is also 500. What are the equilibrium values of C,...

  • Consider an economy described as follows: Y = C + I + G Y = 8,000...

    Consider an economy described as follows: Y = C + I + G Y = 8,000 G = 2,500 T = 2,000 C = 1,000 + 2/3(Y - T) I = 1,200 – 100r a. In this economy, compute private saving, public saving, and national saving. b. Find the equilibrium interest rate. c. Now suppose that G is reduced by 500. Compute private saving, public saving, and national saving. d. Find the new equilibrium interest rate.

  • Question 7. Imagine that the production function of a small open economy is given by: Y-...

    Question 7. Imagine that the production function of a small open economy is given by: Y- AK111/2 where A-1,25 K-L-3600 C-200+0,75Yd CA=-600+600q T-900 I-1000- 6000r G= 1 200 Please, calculate: . Th r* 5% e level of C, I, S, CA and q in equilibrium if we are a closed economy; The level of C, I, S, CA and q in equilibrium if we open our economy; How should change the government spending in order to assure the CA equilibrium?...

  • worth 9 points The income identity for a closed economy says that Y-C+I+G Assume that in...

    worth 9 points The income identity for a closed economy says that Y-C+I+G Assume that in the Economy of Berkeley GDP (Y) is equal to 6,000 and consumption (C) is given by the equation C-600+0.6(Y - T). In addition, investment (I) is given by the equation I-2,000 100r where r is the real of interest rate in percent. Taxes (T) are 500 and government spending (G) is also 500. What are the equilibrium values of C, I, and r?

  • 4. Problems and Applications Q5

    Economists in Funlandia, which has a closed economy, have collected the following information about the economy for a particular year:YY =  = 12,50012,500CC =  = 9,0009,000TT =  = 2,1002,100GG =  = 2,2002,200The economists also estimate that the investment function is:II =  = 2,000−100r2,000−100rwhere rr is the country’s real interest rate, expressed as a percentage.Complete the following table by calculating private saving, public saving, national saving, investment, and the equilibrium real interest rate.ComponentAmountPrivate Saving1,400Public Saving-100National Saving1,300Investment1,300Equilibrium Real Interest Rate7%

  • Consider the economy of Hicksonia a. The consumption function is given by C = 200 +...

    Consider the economy of Hicksonia a. The consumption function is given by C = 200 + 0.6(Y- T). The investment function is I = 200 - 40r. Government purchases and taxes are both 100. For this economy, graph the IS curve for r changing from 0 to 8. b. The money demand function in Hicksonia is (M/P)d = Y - 100r The money supply M is 1000 and the price level P is 2. For this economy, graph the LM...

  • Intermediate Macro Question Consider a small open economy in the classical model, assume the production function...

    Intermediate Macro Question Consider a small open economy in the classical model, assume the production function is y=1000(square root KL) K=20 L=5 Government spending is 1000 and taxes are 1000. the consumption function is c=1500+0.5(Y-T) investment equation is 1000-50r=I net export function is 5000-5000e world interest rate is r=r*=10 Solve 1 income 2 consumption 3 National Savings 4. Investments 5. Trade balance 6 Real exchange rate 7. The real world interest rate rises to 20 solve for the new values...

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