Question: c) Given the following equations: y= cti+g+x c=200+0.8y (consumption function), / = 150-400r (investment function), m = 0.8y -1500r (real demand function), x =100-0.12y -400r

c) Given the following equations: y= cti+g+x c=200+0.8y" (consumption function), / = 150-400r (investment function), m = 0.8y -1500r (real demand function), x =100-0.12y -400r (net export) 8 = 250, (government purchases) 7 = 0.25 (tax rate), 1 = 900 (real money supply). i. Calculate the values of y and r, at equilibrium (7mks) ii. Calculate the values of investment and exports

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

a) Using classical theory, discuss the effect of the following disturbance in the Kenya's economy. i) There is dip in technology in the economy (4mks) b) Discuss the adjustment mechanism on real and...

QUESTION 1. (a), Given the following equations; y=c+i+g+x, c=200+0.8yd (consumption function), i= 150-400r (investment function), m=0.8y- 1500r (real demand function), x=100-0.12y-400r (net export)...

Provide answers to the following macroeconomic questions Given the following equations from a certain economy: C= 100 + 0.8Y (Consumption function) 1 = 10 - 10r (Investment function) L = Y-100r (Real...

Given the following equations: Y = C + I + G + X C = 100 + 0.9Yd (Consumption function) I = 200 - 500r (Investment function) M = 0.8Y - 2000r (Real money demand) X = 100 - 0.12Y - 500r (Net export) G...

What would be the step by step to reach equilibrium? Question 2 (30 points) - Chapters 4, 5 & 6 Suppose the world consists of only one pair of open economies, country A and country B, and these...

CONCORDIA UNIVERSITY Department of Economics ECON 203 SAMPLE MIDTERM EXAMINATION WITH ANSWERS Multiple Choice Questions (2 marks each). 1.Gross domestic product (GDP) equals the ______ of final...

1The central bank sets the required reserve ratio at 20% and there is an initial deposit of $15 000. Calculate the total increase in money supply using the money multiplier: Select one: a.$75000...

Which of the following shifts aggregate demand to the right? A) a decrease in the money supply. B. a decrease in net exports at every exchange rate C) a decrease in prices D) a decrease in imports 2....

Question 1 (20 points) - Chapters 4 & 5 Home is a small open economy with perfect (financial) capital mobility. Initially, it is in its long- run equilibrium and domestic assets and foreign assets...

Use the definition of limit to show that (a) (b) lim (* +4x) 12, x+ 5 im --| 2x + 3 4.

A 400ha catchment area situated near Newcastle in Natal (inland region) has an average annual rainfall of 850 mm. The elevation of the discharge point is 1 323m and the elevation of the point at the...

true or false: the future value of an annuity always exceeds the present value if the interest rate is postive

What of these statements about supply chains is NOT correct? Tiered supply chain structures aim to facilitate coordination and control Goods flow always from upstream to downstream Internal...

What is to be achieved for the individual is based on the companys needs.

Mortality rate

Armed conflicts.