a. 1.5, 34552 b.37999.0.30 C. 7000 , 0.28 d. none 17. if rr = 1000, C = 2000 , ER = 4000, DD = 10000, y = 80000, price = 1.5, rr or h = 0.10, by use M1 , the Md in keynes and value of money in pigou are equal : %3D

"that lowering interest rates in the recessionary COVID-19 period is good policy because it will guarantee consumers will spend more as it is cheaper to borrow money" do you agree or disagree with this statement? provide two reasons why?

In an economy, desired consumption and investment are given by 35- Cd = 4,500 + 0.20Y- 5,000r N = 3,000 - 4,000r 30- where Y is output and r is the real interest rate. 25- Government purchases are G = 2,000. 20- The equation for desired national saving is given by: s4 = -6,500 + 0.80Y + 5,000r. 15- When Y = 10,000, the equilibrium rate of interest is calculated to 10- ber= 17%. When Y = 10,200, the equilibrium rate of interest is calculated to be r= 15%. 5- These equilibrium output and interest rate combinations are used to draw the initial IS curve labeled IS,- 9.9 10.0 10.1 10.2 10.3 Output, Y (thousands) Now the level of government purchases increases to 2,500. Determine the equation for the new saving function: Real interest rate, r

10 - Which of the following depends on the demand for money, which we say just in case and for this purpose?A) IncomeB) to KeynesC) to the economyD) to interestE) Investment

5:45 PM A 5 P NO fill 1.5 42 K ECF515-D-1-2021-1.docx SESSION A: CHOOSE THE BEST ANSWER 1. The IS curve represents A. the single level of output where the goods market is in equilibrium. B. the single level of output where financial markets are in equilibrium. C. the combinations of output and the interest rate where the money market is in equilibriu m D. the combinations of output and the interest rate where the goods market is in equilibriu m. 2. The IS curve will shift to the right when which of the following occurs? A. an increase in the money supply B. an increase in government spending C. a reduction in the interest rate D all of the above. 3. Which of the following occurs as the economy moves leftward along a given IS curve? A. an increase in the interest rate causes investment spending to decrease B. an increase in the interest rate causes money demand to increase C. an increase in the interest rate causes a reduction in the money supply D. a reduction in government spending…

3.What property is shared by all the points along the LM schedule? Along the IS schedule?

Suppose that conditions in the economy are such that the after-tax expected real interest rate is described by the equationRa = a X gWhere a is a number that depends on how people value their consumption in one period compared with another period, and g is the growth rate of the economy. The a equals 1 when people prefer consumption to be balanced, with the same amount of consumption each period; a may be bigger than the one when people prefer consumption today over consumption in the future, with a being larger and larger the more impatient people are:A - Suppose that a = 2, g = 0.02, the inflation rate is expected to be steady at pi = 0.03, and the tax rate is .40. What are the values of the equilibrium nominal interest rate and the before-tax expected real interest rate?B - Beginning with the situation in part a, if the growth rate of the economy increases to .04, what are the new values of the equilibrium nominal interest rate and the before-tax expected real interest rate?C -…

Suppose that conditions in the economy are such that the after-tax expected real interest rate is described by the equationRa = a X gWhere a is a number that depends on how people value their consumption in one period compared with another period, and g is the growth rate of the economy. The a equals 1 when people prefer consumption to be balanced, with the same amount of consumption each period; a may be bigger than the one when people prefer consumption today over consumption in the future, with a being larger and larger the more impatient people are:D - Beginning with the situation in part a, if the expected inflation rate declings to 0.01, what are the new values of the equilibrium nominal interest rate and the before tax expected real interest rate?E - From these results, what general conclusions can you draw about the relationship between the nominal interest rate and the rate of economic growth, the tax rate, and the inflation rate? what about the relationship between the before…

Suppose that conditions in the economy are such that the after-tax expected real interest rate is described by the equationRa = a X gWhere a is a number that depends on how people value their consumption in one period compared with another period, and g is the growth rate of the economy. The a equals 1 when people prefer consumption to be balanced, with the same amount of consumption each period; a may be bigger than the one when people prefer consumption today over consumption in the future, with a being larger and larger the more impatient people are:A - Suppose that a = 2, g = 0.02, the inflation rate is expected to be steady at pi = 0.03, and the tax rate is .40. What are the values of the equilibrium nominal interest rate and the before-tax expected real interest rate?B - Beginning with the situation in part a, if the growth rate of the economy increases to .04, what are the new values of the equilibrium nominal interest rate and the before-tax expected real interest rate?C-…

Given the following informations; Consumption(C) 800+0.9Y, Where Y-Income Investment (I) =8000-800r, where r=interest rate Money Supply (Ms) =28500 Demand for Money (Md) =0.75Y-1500r and if the autonomous Investment decreased then %3D income decreased and interest rate increased. income increased and interest rate decreased. O income decreased and interest rate decreased income increased and interest rate increased