
How to solve this problem especially on the b and d this kind of graph question...
Question 3 Consider a closed economy described by the following equations: Y=C+I+G Y-5,000 G 1,000 T= 1,000 C 250+0.75 (Y -T) 1,000-50 a. (3 points) In this economy, compute private saving, public saving, and national saving. b. (2 points) Find the equilibrium interest rate. c. (2 points) Draw a graph containing the saving and investment curves for this economy Show the financial market equilibrium. d. (2 points) Now suppose the G rises to 1,250. Compute private saving, public saving, and...
Question 3 Consider a closed economy described by the following equations: Y-C+1+G Y -5,000 G- 1,000 T= 1,000 C 2500.75 (Y T) I 1,000-50*r (3 points) In this economy, compute private saving, public saving, and national saving. (2 points) Find the equilibrium interest rate. (2 points) Draw a graph containing the saving and investment curves for this economy. a. b. c. Show the financial market equilibrium d. (2 points) Now suppose the G rises to 1,250. Compute private saving, public...
1. Given the following data, answer all questions Y 5000 G-1000 T 1000 C-250+0.75 (Y-T 1000-50 a. Calculate: Consumption Private Saving Public Saving- National Saving Investment- b. Calculate the equilibrium interest rate:r c. Assume G increases to 1,250. Calculate: Consumption Private Saving- Public Saving National Saving- d. Calculate the new equilibrium interest rate: Now open the economy to NX: NX 500-500 E Investment- e. Calculate: Consumption Private Saving = Public Saving- National Saving Investment- The trade balance- Equilibrium exchange rate-...
4. (12 points) Assume that GDP (Y) is 5000. Consumption (C) is given by the equation C = 1200 + 0.3(Y – T) – 50r, where r is the real interest rate, in percent. Investment (I) is given by the equation I = 1500 – 50r. Taxes (T) are 1000, and government spending (G) is 1500. (a) What are the equilibrium values of C, I, and r? Show your work! (Hint: You need to use 3 equations in order to...
6. Suppose there is a surplus in the market for loanable funds. Is the interest rate above or below its equilibrium level? How do saving and investment at this interest rate be compared? Which one is greater? 7. If at some interest rate desired investment is $400 billion, desired private saving is $600 billion, and the budget deficit is $300 billion, is there a surplus or a shortage in the market for loanable funds? What does this imply would happen...
2. The country, Hoosier (a closed economy), has the following data: GDP: Y = 1200, Consumption: C = 600 – 10,000 r, Taxes: T = 200, Government purchases: G = 300. The investment is I = 700 – 10,000 r a. Use the information above to find the supply and demand equations for loanable funds: i. Supply equation: ii. Demand equation: _ b. What is the equilibrium interest rate, r, and what are national saving and investment, S and I?...
Please do it correctly and clearly so I can understand the
answer. Thank you!
2. The country, Hoosier (a closed economy), has the following data: GDP: Y = 1200, Consumption: C = 600 - 10,000 r, Taxes: T = 200, Government purchases: G = 300. The investment is I = 700 - 10.000 a. Use the information above to find the supply and demand equations for loanable funds: i. Supply equation: ii. Demand equation: b. What is the equilibrium interest...
Savings/Investment in Class GDP = 10 Consumption = 7 Government Spending = 2 Private Savings = 1 Transfer Payments = 1 A) Calculate Taxes, Investment, Public Savings and National Savings B) Draw the graph of the market for loanable funds, assuming the equilibrium interest rate i* = 3% Make sure to label the axis and equilibrium points C) If G increases so that now G = 2.5, recalculate Public Savings, National Savings and Investment. (assume that any other variables stay...
Assume that GDP (Y) IS 5,000. Consumption (C) is given by the equation C-1,200+0.5(Y-T)-50r, where r is the real interest rate in percentage. Investment (I) is given by the equation I=1,500-50r. Taxes (T) are 1,200 and government spending (G) is 1,500. 1) What are the equilibrium values of C, I, and r? 2) What are the values of private saving, public saving, and national saving?
1. In a closed economy, suppose GDP equals $21 trillion, consumption equals $13 trillion, the government spends $7 trillion and has a budget deficit of $800 billion. a. Find government saving, taxes, private saving, national saving, and investment. Please show clearly how you calculated your final answers, and box/circle your final answers (in trillions of dollars) with proper labels No credit will be given to an answer in incorrect units, in notations that differ from what’s used in the lectures,...