It is known that the aggregative economic variables are as follows: Cash demand for speculation : L2 = 100 - 400r The amount of money in circulation = 200 Money demand for transactions and in case: L1 = 0.2Y Savings : S = -110 + 0.2Yd Investment: I = 150 - 600r Tax Tx = 12.5 + 0.25Y Government Expenditure: G = 160 Question : a. calculate the interest rate and national income at the time of general equilibrium? b. How much money is demand for speculation? c. What is the investment volume on balance?
It is known that the aggregative economic variables are as follows: Cash demand for speculation : L2 = 100 - 400r The amount of money in circulation = 200 Money demand for transactions and in case: L1 = 0.2Y Savings : S = -110 + 0.2Yd Investment: I = 150 - 600r Tax Tx = 12.5 + 0.25Y Government Expenditure: G = 160 Question : a. calculate the interest rate and national income at the time of general equilibrium? b. How much money is demand for speculation? c. What is the investment volume on balance?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
It is known that the aggregative economic variables are as follows:
Cash demand for speculation : L2 = 100 - 400r
The amount of money in circulation = 200
Money demand for transactions and in case: L1 = 0.2Y
Savings : S = -110 + 0.2Yd
Investment: I = 150 - 600r
Tax Tx = 12.5 + 0.25Y
Government Expenditure: G = 160
Question :
a. calculate the interest rate and
b. How much money is demand for speculation?
c. What is the investment volume on balance?
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