Find the value of savings at equilibrium y

Assignment Help Business Economics

Reference no: EM13152781

A 1 year US treasury bond yields 0.5% (0.005 as a decimal), and the 1-year euro bond rate is 1.0%. If the current spot rate is € .7565/ $ , and the current 1-year forward rate is €.7465, then which investment offers the highest return? How would covered interest Arbitrage impact the bond, spot and forward markets?

C=200 + .8YD

I= 500

G= 1100

NX=800 - 0.2Y

YD= Y - .25Y + 125

A) Find equilibrium Y in the basic Keynesian model (round Y to the nearest whole number)

B) What are the values of BS and NX at the equilibrium level of Y?

C) Find the value of savings at equilibrium Y.

Reference no: EM13152781

Questions Cloud

How exactly would postrigmin influence the emg : What is EMG (electromyogram) measuring and how might it correlate to muscle force? Describe the physiological reasons that an EMG would sound like a revving engine? and why would prostigmin intensify the sound? and how exactly would postrigmin inf..

Find the predicted handspan for someone five feet tall : It was found that the correlation is about .80 and the regression equation is handspan = 3 + 0.35 height What is the predicted handspan for someone 5 feet tall?

Total present value of investment opportunity : a. What is the net present value of this investment opportunity? b. Based on your answer to (a) above, should Axillar go ahead with the new conditioning shampoo?

Indirect cost of serving a particular customer : Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?

Find the value of savings at equilibrium y : Find equilibrium Y in the basic Keynesian model (round Y to the nearest whole number) What are the values of BS and NX at the equilibrium level of Y? Find the value of savings at equilibrium Y.

Expalin what is the equilibrium constant kc for the reaction : The equilibrium concentration of I2 is 0.05M. What is the equilibrium constant Kc for the reaction at this temperture? Express answer in K

What is the term for the lodgepole pine community : once lodgepole pines are established the forest of yellowstone park will not change radically again.what is the term for the lodgepole pine community?

What is the new pressureof the gas in pa : A 757 mL gas sample at STP is compressed toa volume of 202 mL, and the temperature isincreased to 30 degrees C. What is the new pressureof the gas in Pa?

Explain how is the lowess curve determined : The lowess fitted value is 0.883. Thus the value of adj discussed on the previous slide is 0.883 for spots with A=7. How is the lowess curve determined?

User Account

All Pages