Suppose the following equations describe the relationship between the long-run shares of spending in GDP and the interest rate (R), measured in decimal fractions (that is, R = 0.05 means that the interest rate is 5 percent). Equations: C/Y* = 0.7 – 0.2(R - .05) and I/Y*= 0.2- 0.8(R - .05) XIY* = .0 - 0.95(R - .05) and G/Y* = .2 Use algebra to determine the values of the interest rate and the long-run shares of spending in GDP. R = 0.0859 X C percentage = 69.28 x % I percentage = 17.13 X % X percentage =-3.41 x % G percentage = 20 v %
Suppose the following equations describe the relationship between the long-run shares of spending in GDP and the interest rate (R), measured in decimal fractions (that is, R = 0.05 means that the interest rate is 5 percent). Equations: C/Y* = 0.7 – 0.2(R - .05) and I/Y*= 0.2- 0.8(R - .05) XIY* = .0 - 0.95(R - .05) and G/Y* = .2 Use algebra to determine the values of the interest rate and the long-run shares of spending in GDP. R = 0.0859 X C percentage = 69.28 x % I percentage = 17.13 X % X percentage =-3.41 x % G percentage = 20 v %
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter7: Analytic Trigonometry
Section7.6: The Inverse Trigonometric Functions
Problem 94E
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