Please find the equilibrium values of Income (Y), interest rate (i) investment (0), net exports (NX), and money demand (md) based on the information below. Goods Market Money market Money Supply => ms = 400 = 200 + (4/5)YD TA = (1/8)Y - 40 TR = 60 Consumption => whinn Тах => Money Demand => md = (1/4)Y + 100 - 5i Transfer Payment => Investment => = 300 – 10i Government Spending G = 70 Net Exports NX = 150 - (1/5)Y. =>

Please find the equilibrium values of Income (Y), interest rate (i) investment (0), net exports (NX), and money demand (md) based on the information below. Goods Market Money market Money Supply => ms = 400 = 200 + (4/5)YD TA = (1/8)Y - 40 TR = 60 Consumption => whinn Тах => Money Demand => md = (1/4)Y + 100 - 5i Transfer Payment => Investment => = 300 – 10i Government Spending G = 70 Net Exports NX = 150 - (1/5)Y. =>

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 6E

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The ATV Company produces a specialty cement used in the construction of roads. ATV is a price-setting firm and estimates the demand for its cement using a demand function in the linear form: Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard. The manager of ATV obtained the following results in her attempt to estimate the demand for cement in the succeeding months. The results are presented below: DEPENDENT VARIABLE Qc R- SQUARE F-RATIO P-VALUE ON F OBSERVATIONS 64 0.8093 84.872 0.0001 VARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54…
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