Calculate and sign the tax multiplier (dY/dt) in the following model. Y = C[(1-t)Y] + I[...
Calculate and sign the tax multiplier (dY/dt) in the following model. Y = C[(1-t)Y] + I[ i ] + G M = L[i, (1-t)Y]
Homework Answers
Here, Y = C[(1-t)Y] + I[i] + G
Taking a total differential of Y
dY = 
C/
T[dY
- tdY] + dG ...... Since I is not a function of T (income is not a
function of taxes), it's derivative will be zero
dY = bdY - btdY + dG ..... Where b =
C/T
[ 1- b + bt] dY = (1-b) dG
dY/dG
= 1-b/ (1-b+bt)
dY/dT
= 1-b/ (1-b+bt) where b =
C/T
The tax multiplier always has a negative sign becuase as tax decreases, income increases
Add Answer to:
Calculate and sign the tax multiplier (dY/dt) in the following
model. Y = C[(1-t)Y] + I[...
d 21. Consider the following IS-LM model: C = co +61 (Y – T) I =...
d 21. Consider the following IS-LM model: C = co +61 (Y – T) I = bo + b Y – bai M d¡Y – dzi Р M P Р a. where (b+c) <1 b. Derive IS equation. Derive and determine its sign. [5 points]- di di c. b. Derive LM equation. Derive and determine its sign. [5 points]- d. c. Assume that LM curve is ** dY t dY () M P =dY Solve for the equilibrium output and...
Recall the IS-LM model. In particular, the goods-market equilibrium condition was Y = C (Y −...
Recall the IS-LM model. In particular, the goods-market equilibrium condition was Y = C (Y − T ) + I (r) + G, and the money-market equilibrium condition was m = L (r, Y ). Here, the exogenous variables are G (government spending), T (taxes), and m (real money supply). The endogenous variables are Y (output, or income) and r (real interest rate). C (·) is the consumption function, which is increasing in disposable income Y − T , but...
Find the time constant t of the following differential equation: a(dy/dt)+by+cx=e(dx/dt)+f(dy/dt)...
Find the time constant t of the following differential
equation: a(dy/dt)+by+cx=e(dx/dt)+f(dy/dt)+g, of the given that x
is the inout, y is the output, and a through g are constants.
13, Find the time constant τ from the following differential equation, dt dt given that x is the input, y is the output and, a through g are constants. It is known that for a first-order instrument with differential equation a time constant r- alao dy the
13, Find the time...
(1 point) A. Solve the following initial value problem: dy dt cos (t)-1 with y(6) tan(6). (Find y as a function of t.) (1 point) A. Solve the following initial value problem: dy dt cos (t)-1 wit...
(1 point) A. Solve the following initial value problem: dy dt cos (t)-1 with y(6) tan(6). (Find y as a function of t.)
(1 point) A. Solve the following initial value problem: dy dt cos (t)-1 with y(6) tan(6). (Find y as a function of t.)
dy Solve the initial value problem (t+1). dt = y + (4t² + 4t) (t +...
dy Solve the initial value problem (t+1). dt = y + (4t² + 4t) (t + 1), y(1) = 9 g(t) =
. Consider the following macroeconomic model Y C+ C f(Y T) T=qBY where Y is GDP,...
. Consider the following macroeconomic model Y C+ C f(Y T) T=qBY where Y is GDP, C is consumption, T' denotes taxes, and a and B are con- stants. Assume that f'€ (0,1) and 8 (0, 1). (a) From above given system of equations derive the equation Y B)Y a)I (b) Differentiate the equation in (a) implicitly w.r.t. I and find an expres- sion for dy/dI (c) Examine the sign of dy/dI and comment on your findings. (d) Give economic...
Consider the following initial value problem dy dt = (1 – t)y + sin y with...
Consider the following initial value problem dy dt = (1 – t)y + sin y with y(-1) = 0.5 We want to find y(2) with an absolute error below 10-8.
Solve for y(t). dy/dt + 2x = et dx/dt-2y= 1 +t when x(0) = 1, y(0)...
Solve for y(t). dy/dt + 2x = et dx/dt-2y= 1 +t when x(0) = 1, y(0) = 2
We have the following model of the economy: (I)Y-C+S+T (2) E-C+I+G (3) Y E (4) C-(YD. CA (5) S-s(...
1-5
We have the following model of the economy: (I)Y-C+S+T (2) E-C+I+G (3) Y E (4) C-(YD. CA (5) S-s(YD SA) (6) I=IA 7) G-GA (8) T TA (9) YD Y T (10) Deficit =G-T The following data for equilibrium values will help in this problem. G-800 I 30 T=650 Y'=5,000 Calculate 1. the equilibrium value of consumption 2. marginal propensity to consume (AC/AY) 3. the expenditure multiplier 4. The government budget now has an imbalance ofThis is a DEFICIT...
Consider IS-LM Model: Real Sector: Y=C+I+G C=a+b (1-t) Y I=d-ei G=GO t-income tax rate i- rate...
Consider IS-LM Model: Real Sector: Y=C+I+G C=a+b (1-t) Y I=d-ei G=GO t-income tax rate i- rate of interest Money Market: Ma=M Ma=ky-li M = Mo Mo - exogenous stock of money 1) Setup the system of solutions in general form, with variables vector in the following order: Y, C, I, i; (6 points) 2) Now, suppose we have the following values of parameters: a= 10; b = 0.7; t = 0.2; d = 25; k = 0.25; 1 = 0.04;...
d 21. Consider the following IS-LM model: C = co +61 (Y – T) I = bo + b Y – bai M d¡Y – dzi Р M P Р a. where (b+c) <1 b. Derive IS equation. Derive and determine its sign. [5 points]- di di c. b. Derive LM equation. Derive and determine its sign. [5 points]- d. c. Assume that LM curve is ** dY t dY () M P =dY Solve for the equilibrium output and...
Find the time constant t of the following differential
equation: a(dy/dt)+by+cx=e(dx/dt)+f(dy/dt)+g, of the given that x
is the inout, y is the output, and a through g are constants.
13, Find the time constant τ from the following differential equation, dt dt given that x is the input, y is the output and, a through g are constants. It is known that for a first-order instrument with differential equation a time constant r- alao dy the
13, Find the time...
(1 point) A. Solve the following initial value problem: dy dt cos (t)-1 with y(6) tan(6). (Find y as a function of t.)
(1 point) A. Solve the following initial value problem: dy dt cos (t)-1 with y(6) tan(6). (Find y as a function of t.)
dy Solve the initial value problem (t+1). dt = y + (4t² + 4t) (t + 1), y(1) = 9 g(t) =
. Consider the following macroeconomic model Y C+ C f(Y T) T=qBY where Y is GDP, C is consumption, T' denotes taxes, and a and B are con- stants. Assume that f'€ (0,1) and 8 (0, 1). (a) From above given system of equations derive the equation Y B)Y a)I (b) Differentiate the equation in (a) implicitly w.r.t. I and find an expres- sion for dy/dI (c) Examine the sign of dy/dI and comment on your findings. (d) Give economic...
Consider the following initial value problem dy dt = (1 – t)y + sin y with y(-1) = 0.5 We want to find y(2) with an absolute error below 10-8.
1-5
We have the following model of the economy: (I)Y-C+S+T (2) E-C+I+G (3) Y E (4) C-(YD. CA (5) S-s(YD SA) (6) I=IA 7) G-GA (8) T TA (9) YD Y T (10) Deficit =G-T The following data for equilibrium values will help in this problem. G-800 I 30 T=650 Y'=5,000 Calculate 1. the equilibrium value of consumption 2. marginal propensity to consume (AC/AY) 3. the expenditure multiplier 4. The government budget now has an imbalance ofThis is a DEFICIT...
Consider IS-LM Model: Real Sector: Y=C+I+G C=a+b (1-t) Y I=d-ei G=GO t-income tax rate i- rate of interest Money Market: Ma=M Ma=ky-li M = Mo Mo - exogenous stock of money 1) Setup the system of solutions in general form, with variables vector in the following order: Y, C, I, i; (6 points) 2) Now, suppose we have the following values of parameters: a= 10; b = 0.7; t = 0.2; d = 25; k = 0.25; 1 = 0.04;...
Most questions answered within 3 hours.
-
Given the following information:
acetic acid
CH3COOH
Ka = 1.8×10-5
triethylamine
(C2H5)3N
Kb = 5.2×10-4
(1)...
asked 8 minutes ago -
Potassium permanganate(KMNO4)is has a solubility of 6.4 g/ 100 g
of water at 20ºC, and 250...
asked 5 minutes ago -
51.
As the marginal propensity to expend rises, the multiplier:
decreases.
is impossible to determine.
increases....
asked 12 minutes ago -
The Baldwin Company currently has the following balances on their
balance sheet:
Total
Liabilities
$69,309
Common...
asked 15 minutes ago -
A quiet town in Kansas has 10 people, all of whom have the same
preferences. There...
asked 20 minutes ago -
Summarize what an organization needs from a leader.
a. Analyze what might happen to an organization...
asked 23 minutes ago -
How would one critically evaluate an organizations marketing
strategies from the viewpoint of its consumers, as...
asked 22 minutes ago -
Given a standardized normal distribution (with μ = 0 and a σ =
1), what is...
asked 22 minutes ago -
Company XYZ know that replacement times for the quartz time
pieces it produces are normally distributed...
asked 37 minutes ago -
A) Write the acid-base reaction that occurs between Na2HPO4 and
NaOH
B) Write the possible reactions...
asked 51 minutes ago -
What advantages does the Natural Law Theory have in comparison
with the Divine Command Theory? Explain...
asked 57 minutes ago -
A diver comes off a board with arms straight up and legs
straight down, giving her...
asked 56 minutes ago