Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I'm a little confused on these concepts, would really appreciate if you can break down each question. Assume an economy can be modeled with these

I'm a little confused on these concepts, would really appreciate if you can break down each question.

  1. Assume an economy can be modeled with these equations: C = 270 + b Yd, I = 200, G = 101 - 0.045 Y, X = 330 M = 345 and T = -40 + 0.23Y. What is the value of b when the multiplier on Investment is 0.5368? 2 decimals please.
  2. Suppose a US investor has $5100 to invest and can choose either a US investment paying 5.25% or a foreign investment paying Rf%, where e is currently 11.3 and future e is 11.8. What Rf would leave the investor indifferent between investing at home or abroad? Use 2 decimals so if Rf is 12.34% enter 12.34.
  3. Using Rule of 70, how long does it take to grow $3000 to be at least $6000, at interest rate of 1.75%? (Use at least 1 decimal place)
  4. Suppose that a macro variable fell in a quarter so growth rate was -7.25%. What is the annualized rate of growth? Please enter your answer as a percent (so if -12.34% then enter "-12.34" as the answer)..
  5. What is the value of $555 after 5 years if it grows at a rate of 5%? (Give answer to 2 decimal places)
  6. For the country of Zembla, its CPI in 2018 was 146.51 and in 2019 was 154.54. What was the rate of inflation from 2018 to 2019? Please enter your answer as a percent (so if 12.34% then enter "12.34" as the answer).

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

E-Marketing

Authors: Judy Strauss, Raymond Frost, Adel El Ansary

5th Edition

0136154409, 9780136154402

More Books

Students also viewed these Economics questions