Using the following data, calculate the equilibrium interest rate Y=7,000 G=4000 T=2,000 C=150+0.75(Y-T) I=1,000-50r Public Savings = -2000 Private savings = 1100 National Savings = -900
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Using the following data, calculate the equilibrium interest rate
Y=7,000
G=4000
T=2,000
C=150+0.75(Y-T)
I=1,000-50r
Public Savings = -2000
Private savings = 1100
National Savings = -900
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- The following set of equations describe an economy:C= 15,000 + 0.75(Y – T) – 45,000rIp= 10,000 – 22,500rG= 8,200NX= 1,800T= 8,500Y*= 82,100Find PAE equation and what should be the interest rate to eliminate the outputgap.C = 200 + 0.8Yd I = 220 – 25i G Bar = 240 TR BAR = 150 T = .2Y L = .1Y – 3i M/P = 125 The equilibrium interest rate and output combination isUse the definition of the effective rates of interest and discount. j=[Amount at s+t - Amount at s] / [Amt at s]. d_j=[Amount at s+t - Amount at s] / [Amt at s+t]. For 8 items c & d, if j (d_j) is nominal then effective interest (resp. discount) every mth of a period is j^(m)/m (resp. d^(m)/m).
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