Question: Suppose C-bar (autonomous C) is 4, 1-bar (autonomous ) is 1.5, G-bar (autonomous G) is 4, T-bar (autonomous T) is 3, NX-bar (autonomous NX) is

Suppose C-bar (autonomous C) is 4, 1-bar (autonomous ) is 1.5, G-bar (autonomous G) is 4, T-bar (autonomous T) is 3, NX-bar (autonomous NX) is 1, f-bar ((autonomous f) is 0, mpc is .4, d is 0.35, and x is 0.15.

1. Write the IS equation.

2. Ceteris paribus, if T-bar changes by +3, by what amount will Y change?

3. Ceteris paribus, if f-bar changes by +1, by what amount will Y change?

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!

1. Consider an economy in which all taxes are autonomous and the following values of autonomous consumption, planned investment, government expenditure, autonomous taxes, and the marginal propensity...

The sales are $10 million this and expected to grow at 5% in real terms for the next three years. The appropriate nominal discount rate is 10%. The inflation is expected to be 2% per year during the...

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

now//You are asked to price some options on KYC stock. KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent,...

1. Most economists believe that the source of European high unemployment in the past two decades is A) labor market institutions. B) tight monetary policy. C) tight fiscal policy. D) financial...

Question 1: where C0 = autonomous consumption and c1 = propensity to consume By how much does Y change when G increases by one? a) Delta Y = By how much does Y change when T increases by one? b)...

Assignment 01 (semester 2) Assignment 01 Unique number 730716 Closing date 30 August 2021 Content Learning units 1 and 2 of the Study Guide and the relevant chapters of the prescribed book Questions...

be graded. 1. Keynesian economic theory is associated with the famous economist, John Maynard Keynes (where Keynes rhymes with "Raines"). There are several concepts for which Keynes is remembered....

Kindly help. 1) Rising prices erode the value of money as a ________ and a ________. 1) A) medium of exchange; store of value B ) unit of barter; unit of account C) store of value; unit of barter D)...

Question one. 2. Your stockbroker has called has called you about Netflix, Inc. (NFLX). She tells you that Netflix is selling for $370.00 per share and that she expects the price in one year to be...

(a) What is the advantage of face recognition? (b) What does surreptitious mean? (c) Where is hand geometry recognition used? (d) What are the disadvantages of voiceprint recognition? (e) What are...

Assume that stock market returns do not resemble a single-index structure. An investment fund analyzes 100 stocks in order to construct a mean-variance efficient portfolio constrained by 100...

LO 1 : Describe the vision statement and the value it has in the strategic management process ( CLO 1 )

Assignment 1 You decide to set up a business during MCO. What are the factors you need to consider and how do you decide if it is going to be feasible? a) Choose any management model that you will...

BNP Inc. is an all-equity firm with 12,000 shares outstanding. The current stock price is $40 per share. The company is planning to issue a perpetual debt to buy back its stocks. It can either borrow...

BlueSkye Pty Ltd (BS) was incorporated on 12 August 1990 by its two shareholders, Basil and Joan Skye. Basil and Joan still own the two $1 shares in BS, and they have no intention of selling their...

Blue Mountain Coffee Company sells two different coffees-to-go (flavored coffees and iced coffees). Additionally, they sell their private label ground coffee. Their store fronts are very small with...

Prepare a specific (2-3 page) performance appraisal form of sales representative working in multinational.

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

8. Give examples from your own everyday life that the reference point you use has significance for the actions you take.

6. Give examples of when we give a situation a new name, the situation is perceived differently.

11. Take a familiar problem as your starting point. a) Frame the problem so that it promotes aggressive behaviour. b) Frame the problem so that it promotes defensive behaviour.