intermediate Macroeconomics

Price: $30 USD

Question description

homework3 (1).pdfAnswer each question showing all work to get the answer. 1 Assume that we can model output demand using: Y = 1 1−(1−s) [G−(1−s)T C0 I(r)] where I(r) = Ω−ωr Additonally assume that the Government has a balanced primary budget: ∆T = ∆G In the short run in the following settings compare the value of ∆Y ∆G. Is it larger than 0? Is it smaller or larger than 1? 1. Suppose the economy has a central bank that fixes the interest rate at rc 2. Suppose there is no speculative demand for money, ie Quantity Theory holds. That is M P V = Y 3. Suppose have standard money demand equation : M P V [r πe]γ = Y 2 Suppose a country has a positive debt to nominal gdp ratio ( b

Tutor Answer

(Top Tutor) Daniel C.
School: Cornell University
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1822 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors