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Question 18 (5 points) ) Listen Suppose that lenders want to receive a real rate of interest of 6%, and that they expect inflation to

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Question 18 (5 points) ) Listen Suppose that lenders want to receive a real rate of interest of 6%, and that they expect inflation to remain steady at 3% in the coming years. Based on this, lenders should charge a nominal interest rate of __%. Your Answer: Answer Question 19 (10 points) Listen You are given the following information about aggregate demand at the existing price level for an economy: (1) consumption = $500 billion, (2) investment = $50 billion, (3) government purchases = $100 billion, and (4) exports = $20 billion, imports = $40 billion. If the full-employment level of GDP for this economy is $700 billion. Marginal Propensity to Consume (MPC) of the economy is 0.5. How much government purchases would be closing the GDP-gap here? Explain your answer, and show your calculation. Paragraph BIUAE

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