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FOREX market PLEASE ANSWER ALL PARTS Money Market AND SHOW ALL WORK! Goods Market E-41'=5% C= 100+0.8(Y-TI = 900-3.0004 G-500, T-300 M = 5000 L-03Y-2,000
FOREX market PLEASE ANSWER ALL PARTS Money Market AND SHOW ALL WORK! Goods Market E-41'=5% C= 100+0.8(Y-TI = 900-3.0004 G-500, T-300 M = 5000 L-03Y-2,000 TB-4001-4/E)-0.20Y-2001 20 a) Find the home economy's equilibrium interest rate, i, and the equilibrium output, Y. Calculate consumption, investment, trade balance, and exchange rate at the home economy's equilibrium. b) Given that the monetary authority of the economy reduces the money supply to 3000 find the home countries new equilibrium levels of output, consumption, interest rate, investment, exchange rate, and balance rate. show your work and report your answers in the following tabel M=5000 M=3000 Home gwirion output Exchange ruse Trade Malance work: c) use the IS-LM- FX graph and illustrate in words how this change in money supply affects the economy. on your graph labei the following values of the equilibrium home output interest rate, exchange rate, and domestic return both for M=5000 and M=3000 WORK AND GRAPH: d) provide appropriate economic intuition behind the diretion of changes in home economy's output, consumption investment, interest rate, trade balance, and exchange rate. explain if the changes follow the associated theory taught in class. FOREX market PLEASE ANSWER ALL PARTS Money Market AND SHOW ALL WORK! Goods Market E-41'=5% C= 100+0.8(Y-TI = 900-3.0004 G-500, T-300 M = 5000 L-03Y-2,000 TB-4001-4/E)-0.20Y-2001 20 a) Find the home economy's equilibrium interest rate, i, and the equilibrium output, Y. Calculate consumption, investment, trade balance, and exchange rate at the home economy's equilibrium. b) Given that the monetary authority of the economy reduces the money supply to 3000 find the home countries new equilibrium levels of output, consumption, interest rate, investment, exchange rate, and balance rate. show your work and report your answers in the following tabel M=5000 M=3000 Home gwirion output Exchange ruse Trade Malance work: c) use the IS-LM- FX graph and illustrate in words how this change in money supply affects the economy. on your graph labei the following values of the equilibrium home output interest rate, exchange rate, and domestic return both for M=5000 and M=3000 WORK AND GRAPH: d) provide appropriate economic intuition behind the diretion of changes in home economy's output, consumption investment, interest rate, trade balance, and exchange rate. explain if the changes follow the associated theory taught in class
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