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1. Assume the central bank of the economy described in the last problem expands the money supply and manages to reduce the interest rate to 3.2 %. Determine the new equilibrium values of the endogenous variables.
2. The following is an extended version of the model in exercise #22. In this model r is treated as an endogenous variable with its value determined by income and the money supply,
C = 220 + 0.84YDI = 130 + 0.09YD - 10.5rr = -5 + 0.016Y - 0.02M0 T = 85 + 0.12Y
(a) Treat YD as a separate variable and write the model in matrix form (the coefficient matrix is now a 6 by 6 matrix). Determine the equilibrium values of the endogenous variables assuming G0 = 80 and M0 = 800.
(b) Calculate the model's multipliers.
a waiter takes an order at a table and then enters it online via one of the six terminals located in the restaurant
a scalping world cup tickets not an easy taskb the economics of scalping super bowl ticketswhen listening please pay
Consider the following simple economy with no government or foreign sector: Consumption: C=200+0.8Y Investment: I=100. What is the equation for aggregate demand (AD) for this economy? What is the equilibrium level of income? What is the value of the ..
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the demand function for newtons donuts has been estimated as followsqx -14 - 54px 45py 0.62axwhere qx represents
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