Justify!! 1.- In the simple 45º model without public sector or foreign sector, an autonomous spending multiplier equal to 3 implies that when investment increases by 1, consumption increases by 2, right? Justify. 2.- The curve IS has a positive slope. ¿True or False? Justify. 3.- In an income-expenditure model, in which investment depends positively on income and there is no public sector, and increase in the propensity to save Will mean that income, caving and investment decrease, right? Justify
Justify!!
1.- In the simple 45º model without public sector or foreign sector, an autonomous spending multiplier equal to 3 implies that when investment increases by 1, consumption increases by 2, right? Justify.
2.- The curve IS has a positive slope. ¿True or False? Justify.
3.- In an income-expenditure model, in which investment depends positively on income and there is no public sector, and increase in the propensity to save Will mean that income, caving and investment decrease, right? Justify
4.- If public spending increases, the interest rate increases, right? Justify
5.- Leti t be an open economy with a public sector of which the following data are known:
Equilibrium income, Y=7000; Money demand DM=2Y/i (Y=money income); Reserves, R=10 000; reserve ratio, o= 0,1; effective deposit ratio, e=0,4; investment demand, i=500-2000i. The monetary Base is 140 000
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