subject
Business, 16.12.2020 16:40 TV865432

Consider an economy described by the following. C- = 3.25 trillion
I- = 1.3 trillion
G- = 3.5 trillion
T- = 3.0 trillion
NX- = -1.0 trillion
f- = 1%
mpc = 0.75
d = 0.3 (trillion per 1% change)
x= 0.1 (trillion per 1% change)
λ = 1
r- = 1%
a. Derive expressions for the MP curve and AD curve.
b. Assume that pi = 1%. What is the real interest rate, equilibrium rate of output, consumption, planned investment, and net exports?
c. Suppose the Fed increases r- to r- = 2%. Calculate what happens to the real interest rate, equilibrium level of output, consumption, planned investment and net exports.
d. Considering that output, consumption, planned investment, and net exports all decreased in part (c), why might the Fed chose to increase r-?

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 22.06.2019 21:40, supasavb99
Western electric has 32,000 shares of common stock outstanding at a price per share of $79 and a rate of return of 13.00 percent. the firm has 7,300 shares of 7.80 percent preferred stock outstanding at a price of $95.00 per share. the preferred stock has a par value of $100. the outstanding debt has a total face value of $404,000 and currently sells for 111 percent of face. the yield to maturity on the debt is 8.08 percent. what is the firm's weighted average cost of capital if the tax rate is 39 percent?
Answers: 2
image
Business, 22.06.2019 23:30, lulustar13
Atelephone call center uses three customer service representatives (csrs) during the 8: 30 a. m. to 9: 00 a. m. time period. the standard service rate is 3.0 minutes per telephone call per csr. assuming a target labor utilization rate of 80 percent, how many calls can these three csrs handle during this half-hour period?
Answers: 1
image
Business, 23.06.2019 03:10, kaitlynbrace9742
Wisconsin snowmobile corp. is considering a switch to level production. cost efficiencies would occur under level production, and after tax costs would decline by $36,000, but inventory would increase by $300,000. wisconsin snowmobile would have to finance the extra inventory at a cost of 13.5 percent. a. determine the extra cost or savings of switching over to level production. should the company go ahead and switch to level production? b how low would interest rates need to fall before level production would be feasible?
Answers: 1
image
Business, 23.06.2019 06:00, lordcaos066
Me with this asap. i will give 100 points and brainliest. part one of three (total of 100 points) how do gross national product (gnp) and gross domestic product (gdp) differ? while gnp includes investments as well as production of goods and services, gdp only includes production of goods and services. while gnp includes production by all people and businesses of a country, gdp only includes production within a country’s borders. while gnp includes production of all goods and services, gdp only includes production of final goods and services. while gnp includes imports and exports of goods and services, gdp only includes the net exports of goods and services. read the scenario. a united states company produces widgets in brazil. which is true about the calculation of widget production? the dollar value of the widgets would not be included in either a gnp or a gdp calculation. the dollar value of the widgets would be included in a gnp calculation. the dollar value of the widgets would be included in both a gnp and a gdp calculation. the dollar value of the widgets would be included in a gdp calculation. read the passage. this is the most widely used measure of inflation and is sometimes viewed as an indicator of the effectiveness of government economic policy. it provides information about price changes in the nation's economy to government, business, labor, and private citizens, and it is used by them to guide economic decisions. what is being described? consumer price index export price index producer price index import price index what is the primary tool used to measure inflation? consumer price index gross domestic product durable goods shipments gross national product how does a rise in life expectancy impact population growth? it slows population growth. it reverses population growth. it does not impact population growth. it increases population growth. why does nominal gross domestic product (gdp) sometimes seem larger than real gdp? real gdp counts only final products, whereas nominal gdp does not. real gdp counts imports, whereas nominal gdp does not. real gdp includes inflation in its calculation, whereas nominal gdp does not. real gdp uses an accurate calculation, whereas nominal gdp does not. why does nominal gross domestic product (gdp) sometimes seem larger than real gdp? real gdp counts only final products, whereas nominal gdp does not. real gdp counts imports, whereas nominal gdp does not. real gdp includes inflation in its calculation, whereas nominal gdp does not. real gdp uses an accurate calculation, whereas nominal gdp does not. what impact can government policies have on the business cycle? policies that lower interest rates may cause an economic contraction. policies that decrease spending may cause an economic expansion. policies that raise interest rates may cause an economic contraction. policies that lower taxes may cause an economic contraction. what is true regarding seasonal unemployment? it is much harder to predict than other types of unemployment. it is likely to last longer than other types of unemployment. it is not as troubling to the government as other types of unemployment. it has negative costs similar to those of other types of unemployment. read the sentence. the cost of lumber has increased 145 percent since last quarter. what is the most likely outcome in the furniture market? the market will see a rapid rise in inflation because inelastic products respond quickly to market forces. the market will see cost-push inflation because the increased cost of inputs force prices higher. the market will see demand-pull inflation because consumers need more of the product. the market will see no inflation because there has not been a change in personal income.
Answers: 1
You know the right answer?
Consider an economy described by the following. C- = 3.25 trillion
I- = 1.3 trillion
...

Questions in other subjects:

Konu
Mathematics, 25.08.2019 21:00
Konu
English, 25.08.2019 21:00