Question: Using the values listed below, and assuming that the real interest rate equals 4, calculate equilibrium level aggregate saving. Autonomous Consumption Expenditure (C bar) =

Using the values listed below, and assuming that the real interest rate equals 4, calculate equilibrium level aggregate saving.

Autonomous Consumption Expenditure (C bar) = 3

Autonomous Investment (I bar) = 5

Fixed Government Spending (G bar) = 2

Fixed Taxes (T bar) = 2

Autonomous Net Exports (NX bar) = 1

mpc = 0.6

c = 0.08

d = 0.4

x = 0.1

Financial Frictions (f bar) = 0

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!

Q:

Answer all questions this is my assignment. QUESTION ONE (a) Outline four assumptions underlying consumer equilibrium. (4 marks) (b) With the aid of a diagram, explain the production possibility...

Q:

S h o w yo u r w or k . Answer the questions. In 2016, a country's GDP is $214.8 billion. If the economy experiences 4% economic growth over each of the next two years, what will the be the value of...

Q:

1. According to the text, as compared to rich countries, most of the poor countries do not fare well because: a. they have no oil. b. the people in these countries have limited property rights. c....

Q:

1. According to the text, as compared to rich countries, most of the poor countries do not fare well because: a. they have no oil. b. the people in these countries have limited property rights. c....

Q:

Task O4. The unemployment rate in April 2020 was 14.7%, while in March 2020 was 4.4%. What is your best estimate for the real output growth rate in this period? Assume the US real output was growing...

Q:

KKindly help tutors EXERCISE Question 1 (IS Curve and Short-run Fluctuation) The IS Curve shows the relationship between short-run output (Y,) and real interest rate (R,) on horizontal and vertical...

Q:

fkaa There are 3 parts to question it is an article: UK Corporate Governance Code reporting last year, FRC stated that: "Effectively applying the Corporate Governance Code Principles is much more...

Q:

Do not only give the solutions, but also clearly explain your derivations.Need help please Exercise 6 Consider an economy described by the Mundell-Fleming model: C = C+c( Y - T) I = I-br NX = NX -...

Q:

Q1. MCQs 1. An adverse supply shock would cause the FE line to (a) shift to the right. (b) shift to the left. (c) remain unchanged. (d) remain unchanged if the shock is temporary; shift to the right...

Q:

ll theparts of questions shd be well answered 6. (10) Consider the standard growth model in discrete time. There is a large number of identical households (normalized to 1). Each household wants to...

Q:

Using the Humble Pies Case Study details and financials: 1. Compute the Margin of Safety using the financials (10 points) 2. Compute the Contribution Margin (all 3)(10 points) 3. Develop a...

Q:

If X(t) is a stationary process having a mean value E[X()] = 3 and auto-correlation function R(r) = 9+2.- The expected value of random variable Y = x(t)dt Is: Select one: 4.54 Ob. 2.31 O .6 O d.0

Q:

Which principle of financial planning emphasizes the importance of maintaining eadily available savings?

Q:

Question 5: A water jet of velocity V; impinges normal to a flat plate which moves to the right at velocity Ve, as shown in Fig. below. Find the force required to keep the plate moving at constant...

Q:

Which of the six change images discussed in this chapter can be identified in the assumptions about managing turnover that were held by Gunter? The hospitality literature? The consultant?

Q:

Torn Anderson is a CPA who is engaged to prepare the annual tax return for Mary West, the CEO of a company to which Tom provides regular consulting services. Each year Mary brings Torn several brown...

Q:

a. What are the decision alternatives? b. What are the possible states of nature? Hartsfield International Airport in Atlanta, Georgia, is one of the busiest airports in the world. Plans are being...

Q:

(i) Calculate the double bond equivalents (DBE) for each molecule. (ii) Assign the 'H NMR spectra completely, rationalise the number of peaks, relative integral, their multiplicity or splitting...

Q:

Write a program to wish happy birthday to a student. Firstly, take today month and day as an input and secondly take birthday as an input in the form of month and day. If the input day and month...

Q:

The role of life: It consists of your own service to yourself.

Q:

Competence: What knowledge, skills and attitude do I have towards what I am going to do?

Q:

1. Imagine a real situation in your workplace or home situation, where you have given another person feedback on something he has done. a. What was your intention? b. How was the feedback perceived?...