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• ### 17. Keynesian consumption function: a) C = C + mpcy b) I = I c)t 18.... 17. Keynesian consumption function: a) C = C + mpcy b) I = I c)t 18. Keynesian government spending multiplier a) AC b) AY = AG c) mpc 19. Keynesian fiscal policy in a closed economy: considering that AE =C+I+G + mpc(1 - ty! where t is the tax rate, the government could increase the aggregate expenditure a) increasing the tax rate b) reducing the tax rate 20. If the marginal propensity to consume (mpc) increase, the Keynesian multiplier effect...

• ### 6. An open economy is described by the following equations C = 1000 + 0.6(Y-T) I 20, 000 200r G 5... Answer the question (c) 6. An open economy is described by the following equations C = 1000 + 0.6(Y-T) I 20, 000 200r G 5000 T = 5000 MD MS = 60.000 CA = NX = 2000-0.1Y-1000e KA = 5500+ 2(r-r") r"--10 (a) Derive the IS curve (Y as a function of r and e), LM curve (Y as a function of r) and the BP curve (r as a function of Y, e, and the capital mobility parameter z)...

• ### 21. G increase with algebra. Consider an economy described by the following model. Y = K1/3L2/3... 21. G increase with algebra. Consider an economy described by the following model. Y = K1/3L2/3 K = 1000; L = 1000 G = 100 T = 100 C = 250 + 0.5(Y-T) 1 = 600 – 100r Calculate the equilibrium real interest rate, national saving, public saving, private saving, consumption, output, and investment. (Hint: you probably don't want to solve for them it in that order.) i.rs ii. national saving = iii. public saving = iv. private saving =...

• ### 1. In an economy which has a national income identity as the following; Y= C+ I + G + NX where C ... I need help with this. 1. In an economy which has a national income identity as the following; Y= C+ I + G + NX where C = 400 + 0.6 Yd,; 1 = 1000-4600 r, G-1240 T-200 +0.25 Y; NX-400-0.05Y-8 00 e ( ofcourse, Yd=Y-T) Where e- foreign currency/ domestic currency, and initially set at e 1.25+2.5R The money demand function is Md- 0.75 Y-7500 r, and money supply is set by the Central Bank at 450. All calculation...

• ### Suppose that the following equations describe an economy (C, I, G, T, and Y are measured in billions of dollars and r is measured in percent; for example, r = 10 C=170+0.6(Y-T),T=200,I=100-4r,G=350 (M/P)d=L=0.75Y-6r, (M/P)s=735 a

Suppose that the following equations describe an economy (C, I, G, T, and Yare measured in billions of dollars and r is measured in percent; for example, r = 10C=170+0.6(Y-T),T=200,I=100-4r,G=350(M/P)d=L=0.75Y-6r, (M/P)s=735a. Derive the equation for the IS curve (Hint: It is easier to solve for real output Y here)b. Derive the equation for the LM curve (Hint: Again, it is easier to solve for real outputY here)c. Now express both the IS and LM equations in terms of r. Draw...

• ### macroeconomic please solve it all i need help 8. If the price of coffee decreases, all... macroeconomic please solve it all i need help 8. If the price of coffee decreases, all else held coestant, the Law of Demand states that a firms will produce more coffee b. people will buy more coffee 9. If the price of coffee decreases, all else held constant, the Law of Supply states that a firms will produce more coffee b. people will buy more coffee e. firms will produce less coffee d people will buy more milk shakes c....

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