Let Y = GDP (national income). In equilibrium, Y = C + I + G +...
Let Y = GDP (national income). In equilibrium, Y = C + I + G + X - M, with C + I + G represented on a domestic expenditure basis. If Y = C + I + G + X - M, then Y - (C + I + G) = X - M. If X - M > 0, then Y > C + I + G. For the country under consideration, is this country a borrower or a lender?
Homework Answers
We know national income Y = C+I+G+X-M . Now, if X-M>0, then, Y>C+I+G. In this case, the country has more export over imports i.e, trade surplus, that means its currency will appreciate as there is more demand of its currency. Here, the country will function as a lender. In the reverse case, if X-M<0, country will act as a borrower.
Consider National-Income Model: National Income: Consumption: Investment: Government Sector: Taxes: Y=C+I+G C = a + b...
Consider National-Income Model: National Income: Consumption: Investment: Government Sector: Taxes: Y=C+I+G C = a + b (Y-T) I=k+rY G=GO T=f+jY <b<1 (<r<1 a>0 in mln dollars; k>O in mln dollars; Go >O in mln dollars fo in mln dollars; 0<j<1 1) Discuss in words the meaning of each of the equations in the model (3 points); 2) Find the equilibrium level of GDP (Y*) in reduced form (3 points); 3) If we know the parameters of the system, find the...
1. Points = 18. Consider National-Income Model: National Income: Consumption: Investment: Government Sector: Taxes: Y=C+I+G C...
1. Points = 18. Consider National-Income Model: National Income: Consumption: Investment: Government Sector: Taxes: Y=C+I+G C = a + b (Y-T) I=k+rY G=Go T=f+jY 0<b<1 (<r<1 a> 0 in mln dollars; k>0 in mln dollars; Go >O in mln dollars p> 0 in mln dollars; 0<j<1 1) Discuss in words the meaning of each of the equations in the model (3 points); 2) Find the equilibrium level of GDP (Y) in reduced form (3 points); 3) If we know the...
Calculate the equilibrium level of national income when G=50 I = 15 C = 0.997 +60...
Calculate the equilibrium level of national income when G=50 I = 15 C = 0.997 +60 T=0.8Y+ 15 (government expenditure) (investment) (consumption) (taxation) The equilibrium level of national income is Y = (Round to the nearest integer as needed.)
The options are : National savings = (Y - C - G) or (Y-C) or (G-T)...
The options are : National savings = (Y - C - G)
or (Y-C) or (G-T)
or (Y-T-G)
for the second blank under National Savings the options are (Y)
or (I) or (C) or
(G)
The options are : Private savings = (Y - C - T)
or (Y - T - I) or (T - G)
or (C -T)
The options are : Public Savungs = (Y - C - T)
or (Y - T - I) or (T...
Let the national-income model be Y = C + I0+ G C = a + b(Y...
Let the national-income model be Y = C + I0+ G C = a + b(Y –T0)(a > 0, 0 < b < 1) G = gY(0 < g < 1) a. Solve the above national-income model by Crammer’s rule. b. In your answers in part a, what restriction on the parameters is needed for a solution to exist?
1. In an economy which has a national income identity as the following; Y= C+ I + G + NX where C ...
I need help with this.
1. In an economy which has a national income identity as the following; Y= C+ I + G + NX where C = 400 + 0.6 Yd,; 1 = 1000-4600 r, G-1240 T-200 +0.25 Y; NX-400-0.05Y-8 00 e ( ofcourse, Yd=Y-T) Where e- foreign currency/ domestic currency, and initially set at e 1.25+2.5R The money demand function is Md- 0.75 Y-7500 r, and money supply is set by the Central Bank at 450. All calculation...
Y = C + I + G + NX (1) C = α + β(1 −...
Y = C + I + G + NX (1) C = α + β(1 − t)Y (α > 0; 0 < β < 1) (2) I = θ − δi (θ > 0; δ > 0) (3) G = g + T (g > 0) (4) NX = (X − M) (5) Using differential calculus: solve for the change in national GDP(Y) with respects to a change in government expenditure(g)
3. National accounting identities Let C stand for consumption spending, I for investment, G for government...
3. National accounting identities Let C stand for consumption spending, I for investment, G for government purchases, X for exports, IM for imports, DI for disposable income, and NT for net taxes. Consider the following identity and answer the questions that follow. C+I+G+ (X-IM) = DI + NT Which of the following best characterizes the above identity? O National income must equal domestic product. National income must equal the total amount of leakages from the nation's flow of income and...
The table shows real? GDP, Y?, consumption? expenditure, C?, ?investment, I?, government expenditure on goods and?...
The table shows real? GDP,
Y?,
consumption? expenditure,
C?,
?investment,
I?,
government expenditure on goods and? services,
G?,
?exports,
X?,
?imports,
M?,
and aggregate planned? expenditure, and
AE?,
in millions of dollars. Taxes are constant.
If investment crashes to? $0.55 trillion but nothing else?
changes, what is equilibrium expenditure and
what is the? multiplier?
Homework: Chapter 14 Save Score: 0 of 1 pt 17 of 25 (19 complete) HW Score: 76%, 19 of 25 pts Chapter Problem5 Question Help *...
3. Note the following accounting identity for gross national income (GNI): GNI = C + I...
3. Note the following accounting identity for gross national income (GNI): GNI = C + I + G + TB + NFIA Using this expression, show that in a closed economy, gross domestic product (GDP), gross national income (GNI), and gross national expenditures (GNE) are the same. Show that domestic investment is equal to domestic savings.
Consider National-Income Model: National Income: Consumption: Investment: Government Sector: Taxes: Y=C+I+G C = a + b (Y-T) I=k+rY G=GO T=f+jY <b<1 (<r<1 a>0 in mln dollars; k>O in mln dollars; Go >O in mln dollars fo in mln dollars; 0<j<1 1) Discuss in words the meaning of each of the equations in the model (3 points); 2) Find the equilibrium level of GDP (Y*) in reduced form (3 points); 3) If we know the parameters of the system, find the...
1. Points = 18. Consider National-Income Model: National Income: Consumption: Investment: Government Sector: Taxes: Y=C+I+G C = a + b (Y-T) I=k+rY G=Go T=f+jY 0<b<1 (<r<1 a> 0 in mln dollars; k>0 in mln dollars; Go >O in mln dollars p> 0 in mln dollars; 0<j<1 1) Discuss in words the meaning of each of the equations in the model (3 points); 2) Find the equilibrium level of GDP (Y) in reduced form (3 points); 3) If we know the...
Calculate the equilibrium level of national income when G=50 I = 15 C = 0.997 +60 T=0.8Y+ 15 (government expenditure) (investment) (consumption) (taxation) The equilibrium level of national income is Y = (Round to the nearest integer as needed.)
The options are : National savings = (Y - C - G)
or (Y-C) or (G-T)
or (Y-T-G)
for the second blank under National Savings the options are (Y)
or (I) or (C) or
(G)
The options are : Private savings = (Y - C - T)
or (Y - T - I) or (T - G)
or (C -T)
The options are : Public Savungs = (Y - C - T)
or (Y - T - I) or (T...
I need help with this.
1. In an economy which has a national income identity as the following; Y= C+ I + G + NX where C = 400 + 0.6 Yd,; 1 = 1000-4600 r, G-1240 T-200 +0.25 Y; NX-400-0.05Y-8 00 e ( ofcourse, Yd=Y-T) Where e- foreign currency/ domestic currency, and initially set at e 1.25+2.5R The money demand function is Md- 0.75 Y-7500 r, and money supply is set by the Central Bank at 450. All calculation...
3. National accounting identities Let C stand for consumption spending, I for investment, G for government purchases, X for exports, IM for imports, DI for disposable income, and NT for net taxes. Consider the following identity and answer the questions that follow. C+I+G+ (X-IM) = DI + NT Which of the following best characterizes the above identity? O National income must equal domestic product. National income must equal the total amount of leakages from the nation's flow of income and...
The table shows real? GDP,
Y?,
consumption? expenditure,
C?,
?investment,
I?,
government expenditure on goods and? services,
G?,
?exports,
X?,
?imports,
M?,
and aggregate planned? expenditure, and
AE?,
in millions of dollars. Taxes are constant.
If investment crashes to? $0.55 trillion but nothing else?
changes, what is equilibrium expenditure and
what is the? multiplier?
Homework: Chapter 14 Save Score: 0 of 1 pt 17 of 25 (19 complete) HW Score: 76%, 19 of 25 pts Chapter Problem5 Question Help *...
3. Note the following accounting identity for gross national income (GNI): GNI = C + I + G + TB + NFIA Using this expression, show that in a closed economy, gross domestic product (GDP), gross national income (GNI), and gross national expenditures (GNE) are the same. Show that domestic investment is equal to domestic savings.
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