Assume that money demand takes the following form. M = y [ 1 = (x + m ² ) ] where y = 1,000 and r=0.1 (a) Assume that, in the short even, Te is constant and Calculate the amount of seignorage if rate of money growth, AM/M, equals : - equal to 25.1. the
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- Because of general price inflation in our economy, the purchasing power of the dollar shrinkswith the passage of time. If the average generalinflation rate is expected to be 8% per year for theforeseeable future, how many years will it take forthe dollar’s purchasing power to be one-half of whatit is now?Assume there are only two producing sector Y & Z in an economy. Calculatea) Gross value added at market price by each sector b) National income from the followings:Items Amount in CroresNet factor income from abroad- 20Sales by Y= 1000Sales by Z= 2000Change in stock of Z= -200C Closingstock of Y= 50 Opening stock of Y= 100Consumption of fixed capital by Y & Z= 180Indirect taxes paid by Y & Z= 120Purchase of raw material by Y= 500Purchase of raw material by Z= 600Exports by Z= 704. Eleanor makes year-end deposits of 500,000 the first year, 550,000 the second year, 605,000 thethird year, and so on increasing the next year’s deposit by 10% of the deposit in the preceding yearuntil the end of the 10th year. Ronald makes equal year-end deposits of 720,00,000 each year for 10years. A.) Is the gradient of Eleanor’s payments increasing or decreasing?B.) If interest on both funds is 12% compounded annually, who will be able to save more atthe end of 10 years.
- ! plz solved for a likeOE. They will save between the ages of 35 to 67. OF. They will dissave between the ages of 35 and 67.o Calculate the constant flows based on year zero of the following current data o What is the real rate of the flows if the market rate is 18% o In constant pesos, what is the value of the flows in 2015
- . Assume you just deposited $1,000 into a bank account. The current real interest rate is 2%, and infla- tion is expected to be 6% over the next year. What nominal rate would you require from the bank over the next year? How much money will you have at the end of one year? If you are saving to buy a fancy bicycle that currently sells for $1,050, will you have enough to buy it?133. Assume that the sum that individuals devour is equivalent to 80% of their extra cash of the former year, and au-tonomous utilization is $200 billion. Net venture approaches the expansion to the capital supply of the former enough said. The capital stock at whatever year is consistently equivalent to 2.5 times the level of that very year's utilization. What is the balance pay in the economy? How might the economy act in case it is faced by an abrupt drop in total pay of $50 billion?please ASAP, direct thumps up :)