Business, 19.10.2019 02:10 mateotrevino1

Consider a closed economy with the following partcipants: households, rental firm, production firm and the government: (a)total production: y = 1. (b ) consumption is given by: c = 7200 − 100r where c is consumption and t is tax. (c) firm: investment i is given by equation i = 3000 − 100r. (d) government collect lump-sum tax t=2000 and spend g=3000. use the condition above to answer the following questions: (1) solve the equilibrium real interest rate r, the equilibrium consumption c and the equilibrium investment i.(2) solve the private saving and the public saving in equilibrium.(3) if the government reduces its spending from 3000 to 2000, solve the value of the consumption and investment. compare your answer with your answers to the previous questions, whether reducing government spending increases investment and consumption or not? explain narratively why reducing government spending changes the investment and consumption

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 02:40

Which of the following statements about brand names is true? brand names give the seller an incentive to provide consistently high-quality products and services in order to protect the reputation of the brand. brand names are always economically wasteful since they dupe consumers into buying more expensive goods and services that are no different from generic versions. it is always rational to prefer brand names over generic substitutes. read the following example and determine whether it illustrates a common critique or defense of advertising. musashi sees a commercial for a brand x clothing company that depicts the wearers of the clothes out having a good time with friends. although he doesn't particularly need new clothes, the commercial prompts him to buy a brand x t-shirt.

Answers: 3

Answer

Business, 22.06.2019 11:40

On coral island in 2012, the labor force is 12,000, the unemployment rate is 10 percent, and the labor force participation rate is 60 percent. during 2013, 200 unemployed people found jobs and the working-age population increased by 1,000. the total number of people in the labor force did not change. the working-age population at the end of 2013 was the unemployment rate at the end of 2013 was round up to the second decimal. the labor force participation rate at the end of 2013 was round up to the second decimal.

Answers: 1

Answer

Business, 22.06.2019 13:50

Read the following paragraph, and choose the best revision for one of its sentences.dr. blake is retiring at the end of the month. there will be an unoccupied office upon his departure, and it is big in size. because every other office is occupied, we should convert dr. blake’s office into a lounge. it is absolutely essential that this issue is discussed at the next staff meeting. (a) because every other office is occupied, it’s recommended that we should convert dr. blake’s office into a lounge. (b) because every other office is filled, we should convert dr. blake’s office into a lounge.

Answers: 2

Answer

Business, 22.06.2019 21:30

Providing a great shopping experience to customers is one of the important objectives of purple fashions inc., a clothing store. to achieve this objective, the company has a team of committed customer service professionals whose job is to ensure that customers get exactly what they want. this scenario illustrates that purple fashions is trying to achieve

Answers: 1

Answer

You know the right answer?

Consider a closed economy with the following partcipants: households, rental firm, production firm...

Questions