Question
SOS with this problem from MITx EdX please: Suppose that in this economy all the funds for capital come from savings by the 10 individuals.
SOS with this problem from MITx EdX please:
Suppose that in this economy all the funds for capital come from savings by the 10 individuals. Firms' demand for capital is given byQD=100100r.
a) What is the market supply for funds if the interest rate is 30%?
Qs=?
What is the market supply for funds if the interest rate is 70%?
Qs?
What is the equilibrium interest rate that clears the capital market?
r=?
What is aggregate consumption in each period at that interest rate?
C1 and C2?
Correcto answer for r=0.5, C1=75, C2=75, please show me tha process to obtain the required parameters. Thanks.
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins
5th Edition
0078110866, 978-0078110863
