1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Naily [24]
3 years ago
7

Desired consumption is Cd = 100 + 0.8Y - 500r - 0.5G, and desired investment is Id = 100 - 500r. Real money demand is Md/P = Y -

2000i. Other variables are πe = 0.05, G = 200, Y (Full output level) = 1000, and M = 2100. (a) Find the equilibrium values of the real interest rate, consumption, investment, and the price level. (b) Suppose the money supply increases to 2800. Find the equilibrium values of the real interest rate, consumption, investment, and the price level. (Assume that the expected inflation rate is unchanged.)
Business
1 answer:
allochka39001 [22]3 years ago
4 0

Answer:

Under a) r=0.1;Id=50;Cd=750;P=7 b) P only changes and is now 9.33

Explanation:

a)  In a closed economy national savings are equal to investments or:

S d = I d = Y - Cd - G

Id = Y - 100 - 0.8*Y + 500*r - 0.5*G

100 - 500*r = 0.2*Y -100 + 500*r -0.5*G

200 - 1000*r = 0.2*1000 - 0.5*200=100

-1000*r=-100

r= 0.1

i = 0.15

Id = 100 -50 =50

Cd= 100 + 800 - 50 - 100=750

P = Md/Y-2000 i

P= 2100/1000 -300=7

b) If money supply increases to 2800, the price level would be:

P = 2800/Y - 2000*i = 2800/Y- 2000*(i-inflation)

However, since the variables determining real interest rate remained the same, r is also the same or 0.1 and i is 0.15. Consumption and investment remain the same, only price level changes or:

P=9.33  

You might be interested in
An algebra class has 20 students and 20 desks. for the sake of variety, students change the seating arrangement each day. how ma
Delicious77 [7]
I'm really not sure this is the right answer, but there are 20! ways to arrange 20 students in different orders. 20! is a VERY large number haha but that's how I'd do it :/

4 0
3 years ago
The balance sheet of a corporation reports ______. only the debts of the business and its owners only the results of the busines
grandymaker [24]

Answer:

only the results of the business' activities

Explanation:

 balance sheet is among the three main financial statements prepared by a corporation. It reports the financial positions of the business by showing the value of assets, liabilities, and the shareholder's equity at any point in time. Therefore, a balance sheet shows the net worth of the corporation.

The preparation of the balance sheet follows the accounting equation of assets equals liabilities plus shareholder equity. On one side, the balance sheet reports the assets and liabilities and equity on the other.  In other words, the balance sheets indicate how the assets of a business are financed. It does not report on the personal activities of business owners.

6 0
3 years ago
g Jana just found out that she is going to receive an​ end-of-year bonus of ​$32,200. She is in the 35 percent marginal tax brac
maria [59]

Answer:

Jana just found out that she is going to receive an​ end-of-year bonus of ​$32,200. She is in the 35 percent marginal tax bracket. Calculate her income tax on this bonus.

  • tax liability = $32,200 x 35%  = $11,270

Now assume that instead of receiving a​ bonus, Jana receives the ​$32,200 as a​ long-term capital gain. What will be her​ tax?

  • tax liability = $32,200 x 15% = $4,830

Which form of compensation offers Jana the best​ after-tax return?

  • if the bonus is taxed as a long term capital gain, she will páy less than half the taxes, so it is the best option for her

Would your calculation be different if the gain was​ short-term rather than​ long-term?

  • Short term capital gains are taxed at the same rate as ordinary income, so the difference between the bonus being a long vs short term capital gain is very significant to Jana.

8 0
3 years ago
If the interest earned by a CD is compounded annually, which rule is most accurate when calculating how long it will take the mo
Gennadij [26K]
B.) Rule of 72; just had this question on Apex and was trying to find the answer but guessed since I couldn’t find it. Posting to save a life!
5 0
3 years ago
Read 2 more answers
32. What is a predatory financial service?
Tresset [83]
<h2>Answer:</h2>

<h3>Predatory lending typically refers to lending practices that impose unfair,selective, or abusive loan term on borrowers.</h3>

<h2>Explanation:</h2>

<h3>Hope It's Help</h3>

<h3>#Carry On Learning</h3>

8 0
2 years ago
Other questions:
  • The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $220,0
    6·1 answer
  • ​Smokey's Sandwich Shoppe paid​ $3,000 for a 2minusyear insurance policy on March​ 1, 2018. The accountant forgot to make any ad
    9·1 answer
  • Based on the following data, what is the quick ratio, rounded to one decimal point? Accounts payable $ 30,000 Accounts receivabl
    7·1 answer
  • As a flight attendant, Mary Ann is supposed to smile and act cheerful at all times on the flight; however, she feels tired and a
    12·1 answer
  • Guinan Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direc
    12·1 answer
  • A person who wants to work in lodging, restaurant services, travel, amusements, and attractions wants to follow the career pathw
    5·2 answers
  • Paula used to check her voice mail each time she returned to her office after a meeting or break. Now she checks her voice mail
    10·1 answer
  • A frequently used form of overdraft protection is A. when a merchant refuses to accept checks and therefore never has any checks
    9·1 answer
  • If I Want to be a Child Pycoligest, what would the steps be to become this.​
    14·1 answer
  • ABC's beginning inventory is $2,000 and its ending inventory is $1,000. The inventory turnover is 6 times. Cost of goods sold fo
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!