Business, 19.12.2019 22:31 xelynncaldera

For the economy described below:

c

= 2,600 + 0.8 (y – t) – 10,000r

i p = 2,000 – 10,000r

g = 1,800

nx = 0

t = 3,000

suppose that potential output y* equals 12,000.

a. what real interest rate should the fed set to bring the economy to full employment? you may take as given that the multiplier for this economy is 5.

instruction: enter your response as an integer value.

real rate of interest: %.

b. repeat part a for the case in which potential output y* equals 9,000.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 18:00, chrismed2001

Emily bought 200 shares of abc co. stock for $29.00 per share on 60% margin. assume she holds the stock for one year and that her interest costs will be $80 over the holding period. ignoring commissions, what is her percentage return (loss) on invested capital if the stock price went down 10%?

Answers: 2

continue

Business, 22.06.2019 00:30, juicyx39

Norton manufacturing expects to produce 2,900 units in january and 3,600 units in february. norton budgets $20 per unit for direct materials. indirect materials are insignificant and not considered for budgeting purposes. the balance in the raw materials inventory account (all direct materials) on january 1 is $38,650. norton desires the ending balance in raw materials inventory to be 10% of the next month's direct materials needed for production. desired ending balance for february is $51,100. what is the cost of budgeted purchases of direct materials needed for january? $58,000 $65,200 $26,550 $25,150

Answers: 1

continue

Business, 22.06.2019 19:30, livimal77

At december 31, 2016, pina corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 107,810 shares $10,781,000 common stock, $5 par, 4,026,000 shares 20,130,000 during 2017, pina did not issue any additional common stock. the following also occurred during 2017. income from continuing operations before taxes $21,950,000 discontinued operations (loss before taxes) $3,505,000 preferred dividends declared $1,078,100 common dividends declared $2,300,000 effective tax rate 35 % compute earnings per share data as it should appear in the 2017 income statement of pina corporation

Answers: 1

continue

Business, 22.06.2019 20:00, javonteoshamccaliste

Lillypad toys is a manufacturer of educational toys for children. six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. what should lillypad's managers prepare for next? a. increased competition from imitators b. a prolonged period of uncontested success c. a sharp decline in demand for the product d. a difficult struggle to move from invention to innovation

Answers: 2

continue

You know the right answer?

For the economy described below:

c

= 2,600 + 0.8 (y – t) – 10,000r