Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider an economy described by the following: C = $3.3 trillion f = 1 / = $1.3 trillion mpc = 0.75 G = $2.8 trillion

image text in transcribed
Consider an economy described by the following: C = $3.3 trillion f = 1 / = $1.3 trillion mpc = 0.75 G = $2.8 trillion d = 0.2 T = $3 trillion x = 0.15 NX = $ -0.5 trillion O B. NX = - 0.75-0.15r. O C. NX = - 1.1-0.75r. D. NX = -0.5-0.15r. An expression for the IS curve is: O'A. Y = 1.4-1.1r. 'B. Y = 17.8-1.4r. O C. Y= 1.4- 17.8r. O D. Y = 17.8-3.3r. If the real interest rate is r=2, equilibrium output Y =$ 15.0 trillion. (Round your response to one decimal place.) If the real interest rate is = 5, equilibrium output Y =$|trillion. (Round your response to one decimal place.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sociology Of Economic Innovation

Authors: Francesco Ramella

1st Edition

1317621344, 9781317621348

More Books

Students also viewed these Economics questions