In an economy, desired consumption and investment functions are: cd = 310 + 0.60(Y-T) - 220r id = 260.0 - 270r. Taxes an

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

In an economy, desired consumption and investment functions are: cd = 310 + 0.60(Y-T) - 220r id = 260.0 - 270r. Taxes an

Post by answerhappygod »

In An Economy Desired Consumption And Investment Functions Are Cd 310 0 60 Y T 220r Id 260 0 270r Taxes An 1
In An Economy Desired Consumption And Investment Functions Are Cd 310 0 60 Y T 220r Id 260 0 270r Taxes An 1 (69.85 KiB) Viewed 73 times
In an economy, desired consumption and investment functions are: cd = 310 + 0.60(Y-T) - 220r id = 260.0 - 270r. Taxes and government purchases are T= 25 + 0.20 Y G= 50. In this economy, the full-employment level of output is 1,000. Find an equation that relates the level of output to the real interest rate that clears the goods market; this equation describes the IS curve. (Hint: Write the goods market equilibrium condition and solve for Y in terms of r.) Y= -r. (Enter your responses rounded to the nearest integer.) r.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”