16. Planned spending is as follows: C= 600+0.7(Y-1)-200r, P=200-500r, G=200, NX= 10 and T = 150....

 

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16. Planned spending is as follows: C= 600+0.7(Y-1)-200r, P=200-500r, G=200, NX= 10 and T = 150. Which of the following also states PAE? A 1905-700] +0.3Y B. 1905-700 C 1910-700 D. 1905-700 +0.7Y 17. The Fed would like to close a recessionary gap. To do this real interest rates must the money supply. A increase, increasing B increase, decreasing C. decrease, decreasing D. decrease, increasing 18. Consider the following data PAE 4,500+0.7Y -25,000r Interest rate 6% Y*= 11,750 The Fed should A reduce, expansionary B reduce, recessionary the interest rate in order to close what type of gap. C raise, recessionary D raise, expansionary This is accomplished by 16. Planned spending is as follows: C= 600+0.7(Y-1)-200r, P=200-500r, G=200, NX= 10 and T = 150. Which of the following also states PAE? A 1905-700] +0.3Y B. 1905-700 C 1910-700 D. 1905-700 +0.7Y 17. The Fed would like to close a recessionary gap. To do this real interest rates must the money supply. A increase, increasing B increase, decreasing C. decrease, decreasing D. decrease, increasing 18. Consider the following data PAE 4,500+0.7Y -25,000r Interest rate 6% Y*= 11,750 The Fed should A reduce, expansionary B reduce, recessionary the interest rate in order to close what type of gap. C raise, recessionary D raise, expansionary This is accomplished by

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16 The equation that also states the private aggregate expenditures PAE is 1905700f07Y This equation matches the components of PAE given in the inform... View the full answer