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.)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter5: Business And Economic Forecasting
Section: Chapter Questions
Problem 1E: The forecasting staff for the Prizer Corporation has developed a model to predict sales of its...
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![The /S equation is determined to be Y= 1506.77-2869.23/.
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.)
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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffde770bd-43aa-4ccc-b4cb-17bbc4be0d99%2Fc796b8e2-7e28-45a4-8077-0c922ee5b531%2Fntuphp9_processed.png&w=3840&q=75)
Transcribed Image Text:The /S equation is determined to be Y= 1506.77-2869.23/.
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.)
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 = 332
T =
=
MIP =
266
0.05
2.1Y-7,490/](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffde770bd-43aa-4ccc-b4cb-17bbc4be0d99%2Fc796b8e2-7e28-45a4-8077-0c922ee5b531%2Fdl3dosy_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the following /S-LM model:
C = 218 +0.46YD
/ = 160+ 0.15Y-1,119/
G = 332
T =
=
MIP =
266
0.05
2.1Y-7,490/
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