The /S equation is determined to be Y= 1506.77-2869.23/.The LM equation is given as i = 0.05Initial equilibrium values of Y, C, I, and the real money supply are calculated asY = 1,363C = 723/ = 309MIP = 2,488Now suppose that the central bank hikes the interest rate to 6%. In a graph of the IS-LM model, this causes the LM curve to shiftFollowing the change in the interest rate to 6%, the value of equilibrium real output becomesFollowing the change in the interest rate to 6%, the values of the new equilibrium C and / are:C =(Round your responses to the nearest integer.)1 =(Round your responses to the nearest integer.)Which of the following statements is not consistent with the effects of a contractionary monetary policy?As the interest rate rises,O A. the money supply decreases and equilibrium real output decreases.O B. equilibrium consumption decreases.O C. equilibrium investment may increase, decrease, or remain unchanged.O D. the real demand for money falls.(Round your response to the nearest integer.) Consider the following /S-LM model:C = 218 +0.46YD/ = 160+ 0.15Y-1,119/G = 332T ==MIP =2660.052.1Y-7,490/

IS relation depicts the set of points which represent equilibrium in goods market . IS relation : Y…

The /S equation is determined to be Y= 1506.77-2869.23i. The LM equation is given as i = 0.05 Initial equilibrium values of Y, C, I, and the real money supply are calculated as Y = 1,363 C = 723 / = 309 MIP = 2,488 Now suppose that the central bank hikes the interest rate to 6%. In a graph of the IS-LM model, this causes the LM curve to shift Following the change in the interest rate to 6%, the value of equilibrium real output becomes [ Following the change in the interest rate to 6%, the values of the new equilibrium C and / are: C= (Round your responses to the nearest integer.) | = (Round your responses to the nearest integer.) (Round your response to the nearest integer.)

The /S equation is determined to be Y= 1506.77-2869.23i. The LM equation is given as i = 0.05 Initial equilibrium values of Y, C, I, and the real money supply are calculated as Y = 1,363 C = 723 / = 309 MIP = 2,488 Now suppose that the central bank hikes the interest rate to 6%. In a graph of the IS-LM model, this causes the LM curve to shift Following the change in the interest rate to 6%, the value of equilibrium real output becomes [ Following the change in the interest rate to 6%, the values of the new equilibrium C and / are: C= (Round your responses to the nearest integer.) | = (Round your responses to the nearest integer.) (Round your response to the nearest integer.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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