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6. A large open economy has desired national saving of sd 2000+ 1000-, and desired national...
1. An economy has government purchases of 2000. Desired national saving and desired investment are given by sd = 200+ 5000r + 0.10Y-0.20G pd - 1000 - 4000r When the full-employment level of output equals 5000, then calculate the real interest rate at which the goods market is in equilibrium
7. Consider Two large open economics, the home economy and the foreign economy. In the home country the following relationships hold: desired consumption, Cd = 420+0.4(Y-T)-200rw desired investment, Id =250-200rw output, Y =1000 TAXES, t = 200 Government purchases, G =275 In the foreign country the following relationships hold: Desired consumption, Cdfor = 480+0.4(Yfor-Tfor)-300rw Desired investment, Idfor=225-300rw Output, Yfor = 1500 Taxes, T for =300 Government purchase, G for =300 What is the equilibrium interest rate in the international capital...
Can someone please explain? Consider two large open economies, the home economy and the foreign economy. In both countries the following relationships hold Domestic Foreign Desired consumption, Cd-320 + 0.4(Y-T)-200rw. Desired investment, 150 200* Output, Y = 1.000 Taxes, T 200 Government purchases. G 275 Fr4800.4(YFr To 300r. For 225 300 For1,500 For-300 For 300 a. What is the equilibrium interest rate in the international capital market?(Enter your response as a decimal rounded to three places.) What are the equilibrium...
2. Consider a large open domestic economy with a financial account surplus. i. Draw a diagram showing this situation (Your answer should include two graphs, one for the omestic economy and one for the foreign economy). (10 Points)- Note: Draw the two graphs side by side and clearly indicate the world interest rate as a single line going through both graphs. ii. What are the effects, in equilibrium, on the world real interest rate, domestic national saving, domestic investment, the...
An economy has full-employment output of 9,000, and government purchases are 2,000. Desired consumption and desired investment are as follows: Real Interest Rate(%) Desired Consumption 6,100 6,000 5,900 5,800 5,700 Desired Investment 1,300 1,200 ou AWN 1,100 1,000 900 c. If the goods market is in equilibrium, what are the values of the real interest rate, desired national saving, and desired investment? r=%, sd = =
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-...
China is a large open economy with an extraordinarily high saving rate. If, as seems likely, there is a decrease in desired saving in the coming years, what effects should we expect to see on China's trade balance (net capital flow), domestic real interest rate, and actual levels of saving and investment?
The graphs below show the saving and investment schedules for two large open economies. Home Foreign = 16% World real interest rate (%) = 10% = 6% = 4% OHITIT UTTTTTTTTTTTTTTTTTTT 0.0 20.0 40.0 60.0 80.0 100.0 saving, investment (billions) 0.0 20.0 40.0 60.0 80.0 100.0120.0 saving, investment (billions) The equilibrium world real interest rate is: 10 % (enter your response as a percentage). At this equilibrium interest rate, 'Home' is a and has a current account net borrower net...
Question #1 (10 Marks) 500 1000 1500 2000 2500 3000 3500 200 650 1100 1550 2000 2450 2900 3350 100 100 100 100 100 100 100 1005001600 250 500 500 500 500 500 500 500 1400 50 200 1000 400 125 600 S0 8001O 1000 2000 1200 8SD 400 400 400 Complete the Total Planned Expenditure (AE) column for all levels of income (Y) on the above table. a) What is the consumption function? Complete the equation. C- 200 b)...
tes no to 1ldood ms sd no s 0 mW S rsa of bolnat Question 2 [1 point Suppose Japan's economy operates according to Okun's law, with actual GDP Y200 trillion and actual unemployment 2.5 percent. If the natural rate of unemployment is 4% , what is potential GDP? Question 3 [6 points You are given the following information about an economy that is experiencing an investment boom. Consumption Investment Government purchases Net exports Net foreign income Government taxes 3000...