Consider the following numerical example of the is-lm model:

c = 200 + 0.25yd

i = 150 + 0.25y - 1000i

g = 250

t = 200

i = 0.05 (the i has a bar over it)

a. derive the is relation. (hint: you want an equation with y on the left side and everything else on the right.)

b. the central bank sets an interest rate of 5%. how is that decision represented in the equations?

c. waht is the level of real money supply when the interest rate is 5%? use the expression (m/p) = 2y - 8000i

d. solve for the equilibrium values of c and i, and verify the value you obtained for y by adding c, i, and g.

e. now suppose that the central bank cuts the interest rate to 3%. how does this change the lm curve? solve for y, i, and c, and describe in words the effects of an expansionary monetary policy. what is the new equilibrium value of m/p supply?

f. return to the initial situartion in which the interest rate set by the central bank is 5%. now suppose that government spending increases to g = 400. summarize the effects of an expansionary fiscal policy on y, i, and c. what is the effect of the expansionary fiscal policy on the real money supply?

During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100

Creation landscaping has 1,000 bonds outstanding that are selling for $1,280 each. the company also has 2,000 shares of preferred stock outstanding, currently priced at $27.20 a share. the common stock is priced at $37.00 a share and there are 28,000 shares outstanding. what is the weight of the debt as it relates to the firm's weighted average cost of capital?

The following information is needed to reconcile the cash balance for gourmet catering services. * a deposit of $5,600 is in transit. * outstanding checks total $1,000. * the book balance is $6,400 at february 28, 2019. * the bookkeeper recorded a $1,800 check as $17,200 in payment of the current month's rent. * the bank balance at february 28, 2019 was $17,410. * a deposit of $400 was credited by the bank for $4,000. * a customer's check for $3,300 was returned for nonsufficient funds. * the bank service charge is $90. what was the adjusted book balance?