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Hello, can I please have assistance with answering ALL parts of the following question? The last answer was incorrect, and I had to pay money
Hello, can I please have assistance with answering ALL parts of the following question? The last answer was incorrect, and I had to pay money out-of-pocket, so I would greatly appreciate if all parts were answered accurately. Thank you and have a wonderful rest of your day!
Suppose a hypothetical open economy uses the U.S. dollar as currency. The table below presents data describing the relationship between different real interest rates and this economy's levels of national saving, domestic investment, and net capital outflow. Assume that the economy is currently operating under a balanced government budget. Real Interest Rate National Saving Domestic Investment Net Capital Outflow Percent Billions of dollars) (Billions of dollars) (Billions of dollars) 55 25 -15 50 30 -10 45 35 -5 40 40 35 45 30 50 10 Given the information in the table above, use the blue points (circle symbol) to plot the demand for loanable funds. Next, use the orange points (square symbol) to plot the supply of loanable funds. Finally, use the black point (cross symbol) to indicate the equilibrium in this market. (?) Market for Loanable Funds 10 O Demand Supply REAL INTEREST RATE Equilibrium N 20 40 100 QUANTITY OF LOANABLE FUNDSOn the following graph, plot the relationship between the real interest rate and net capital outflow by using the green points (triangle symbol) to plot the points from the initial data table. Then use the black point (X symbol) to indicate the level of net capital outflow at the equilibrium real interest rate you derived in the previous graph. (?) Net Capital Outflow 10 A NCO .+ 6 Egm. NCO REAL INTEREST RATE 4 2 -20 -15 -10 -5 0 5 10 15 20 NET CAPITAL OUTFLOW (Billions of dollars) Because of the relationship between net capital outflow and net exports, the level of net capital outflow at the equilibrium real interest rate implies that the economy is experiencing Now, suppose the government is experiencing a budget deficit. This means that , which leads to loanable funds. After the budget deficit occurs, suppose the new equilibrium real interest rate is 6%. The following graph shows the demand curve in the foreign- currency exchange market.After the budget deficit occurs, suppose the new equilibrium real interest rate is 6%. The following graph shows the demand curve in the foreign- currency exchange market. Use the green line (triangle symbol) to show the supply curve in this market before the budget deficit. Then use the purple line (diamond symbol) to show the supply curve after the budget deficit. (? ) Market for Foreign-Currency Exchange 10 A Initial Supply Supply with Deficit REAL EXCHANGE RATE 2 Demand 20 -15 -10 -5 0 5 10 15 20 QUANTITY OF DOLLARS (Billions) Summarize the effects of a budget deficit by filling in the following table. Real Interest Rate e Real Exchange Rate Trade Balance Effects of a Budget Deficit5. Monetary policy and the Phillips curve The following graph plots the short-run Phillips curve for a hypothetical economy. The given point on the graph indicates the initial rates of memployment and inflation. Assume that the accrtomy is currently in long-run equilibrium. Supporta the central bank of the hypothetical economy decides to decrease the monay supply On that following graph, shift the curve or drag the hil point along the curvit, or do both, to show the short run affects of this policy. d bank's maree was unanticipated. O INFLATION RATE (Pacif) 15 UNEMPLOYMENT HATE /Perca) In the short run, an unexpected decrease in the money supply results in in the inflation rate and in the On what following graph, shift the curve or drag the hiw point along the curve, or do bath, to show the long run effects of the decrease in the monday supply (7) O- INFLATION RATE ( COM UNEMPLOYMENT RATE (Part In the long run, the decrease in the money supply results in in the inflation rate and in the unemployment rate fridalive to the economy's initial equilibrium)Step by Step Solution
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