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economics questions Consider a bond that promises to pay $100 in one year... If i = 0.28 what is the price of the bond today?

economics questions

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Consider a bond that promises to pay $100 in one year... If i = 0.28 what is the price of the bond today? Answer:Consider the following numerical model: C=700 + 0.8Y I = 500-2000i+0.1Y G = 400 T = 500 Find the equation for the IS curve (keep in mind that Y=Y-T). If you were to draw the IS curve, what would the intercept (where the IS curve crosses the Y vertical axis) be? (and find the intercept in relation to Y - ie in the form Y=a-bi where a is the intercept) Answer:Consider a bond that promises to pay 100 in one year... What is the interest rate on the bond (i) if its price today is 85? (please answer in the x.xx format, e.g. 0.121 for 12.1%) Answer: Suppose that the money demand is given by, d M=K30 with Y= e100b and also let = M5: 20b. What is the interest rate that clears the money market? (answer in percentage terms by answering with a number between 0 and 100) Answer: Which of the following events will cause a reduction in equilibrium output? Select one: Q a. an increase in the marginal propensity to save b. an increase in taxes c. a reduction in the marginal propensity to consume d. all of the above 0000 e. none of the above An economy is in equilibrium when which of the following conditions is satised? Select one: Q a. output equals consumption b. total savings equals consumption c. consumption equals saving d. total savings equals investment 0000 e. none of the above Suppose that the money demand is given by, M d =K0.5 - I) with Y= 1856 billion and also let = ' = 116 billion What is the interest rate that clears the money market? (answer in the format 0.xxx, for example 0.121 for 12.1%)

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