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3 years ago

6. Consider an economy described by the following equations:

Business

1 answer:

kiruha [24]3 years ago

7 0

Answer:

(a) Private saving = Y-T-C

Private saving = 5000-1000-250-0.75(5000-1000)

Private saving = 750

Public saving = T - G

Public saving = 1000-1000

Public saving = 0

National saving = S = private saving+ public saving

National saving = 750

(B) Equilibrium interest rate = S + I

750 = 1000 - 50r

-50r = 750 - 1000

-50r = -250

50r = 250

r = 250/50

r = 5%

Public saving = 1000 - 1250

Public saving = - 250

(d) The new equilibrium interest rate

750 (-250) = 1000-50r

500 = 1000 - 50r

- 50r = 500 - 1000

- 50r = -500

-50r = 500

r = 500/50

r = 10%

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Answer:

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3 years ago

A 25-year old client with a low risk tolerance wishes to invest in bonds. The client has invested in equities before, but has no

Gnesinka [82]

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3 years ago

Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available

wlad13 [49]

Answer:

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3 years ago

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Answer:

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2 years ago

Lawler Manufacturing Company expects annual manufacturing overhead to be $810,000. The company also expects 45,000 direct labor

8_murik_8 [283]

Answer:

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