EBK MACROECONOMICS
10th Edition
ISBN: 9780134896571
Author: CROUSHORE
Publisher: VST
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Question
Chapter 9, Problem 3AP
a
To determine
To know: The short term effect on real interest and and output due to decrease in the expected rate of inflation.
b)
To determine
To find: The short term effect on real interest and output due to increase in consumer optimism
c)
To determine
To know: The short term effect on real interest and output due to temporary increase in government purchases.
d)
To determine
To know: The short term effect on real interestand output due to an increase in lump sum tax
e)
To determine
To find: The short term effect on real interest and output due to scientific breakthrough
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Students have asked these similar questions
The following set of equations describe an
economy:
C = 14,400+ 0.5 (YT) - 40,000r
lp = 8,000 - 20,000r
G = 7,800
NX = 1,800
T = 8,000
Y* = 40,000
Suppose that the real interest rate (r) is 10%. Is the
economy in long run equilibrium? If not, what real
interest rate should central bank set to restore the
economy back to the long run equilibrium? And
what methods can central bank use to adjust the
interest rate? (Round your answer to 2 decimal
places)
The following set of equations describe an economy:
C = 14,400 + 0.5 (Y − T) − 40,000r
Ip = 8,000 − 20,000r
G = 7,800
NX = 1,800
T = 8,000
Y* = 40,000
Suppose that the real interest rate (r) is 10%. Is the economy in long run equilibrium? If not, what real interest rate should central bank set to restore the economy back to the long run equilibrium? And what methods can central bank use to adjust the interest rate? (Round your answer to 2 decimal places)
Assume that at a Monetary Policy Committee meeting the South African Reserve Bank decides to increase the repo rate.
what is the impact of a higher repo rate be on real production (Y) and prices
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