y = c + i + g + nx,
Business, 16.11.2019 02:31 princessmnicole2
Consider an economy described by the following equations:
y = c + i + g + nx,
y = 5,000,
g = 1,000,
t = 1,000,
c = 250 + 0.75(y – t),
i = 1,000 – 50r,
nx = 500 – 500e,
r = r* = 5.
a. in this economy, solve for national saving, investment, the trade balance, and the equilibrium exchange rate.
b. suppose now that g rises to 1,250. solve for national saving, investment, the trade balance, and the equilibrium exchange rate. explain what you find.
Answers: 3
Business, 22.06.2019 06:50
On january 1, vermont corporation had 40,000 shares of $10 par value common stock issued and outstanding. all 40,000 shares has been issued in a prior period at $20.00 per share. on february 1, vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on march 1. the journal entry to record the purchase of the treasury shares on february 1 would include a credit to treasury stock for $90,000 debit to treasury stock for $90,000 credit to a gain account for $112,500 debit to a loss account for $112,500
Answers: 3
Business, 22.06.2019 08:50
Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. the frictional unemployment rate is percent and the actual unemployment rate (in this economy) is percent.
Answers: 2
Business, 22.06.2019 18:00
Bond j has a coupon rate of 6 percent and bond k has a coupon rate of 12 percent. both bonds have 14 years to maturity, make semiannual payments, and have a ytm of 9 percent. a. if interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?
Answers: 2
Business, 22.06.2019 19:30
Consider the following two projects. both have costs of $5,000 in year 1. project 1 provides benefits of $2,000 in each of the first four years only. the second provides benefits of $2,000 for each of years 6 to 10 only. compute the net benefits using a discount rate of 6 percent. repeat using a discount rate of 12 percent. what can you conclude from this exercise?
Answers: 3
Consider an economy described by the following equations:
y = c + i + g + nx,
y = c + i + g + nx,
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