Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Question
Chapter 4, Problem 5NP
a)
To determine
The reason behind fall in desired consumption and desired investment due to rise in real interest rate.
b)
To determine
The desired national saving for each value of the real interest rate.
c)
To determine
The value of the real interest rate, desired national saving, and desired investment when the goods market is in equilibrium. Assuming fixed output at full-employment level.
d)
To determine
The value of the real interest rate, desired national saving, and desired investment when the goods market is in equilibrium and the government purchases fall to 1600.
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Students have asked these similar questions
(b). Consider an economy described by the following equations (1
Y =C +I+G
Y = 5000; G = 1000; T = 1000; C = 250 + 0.75 (Y-T); I = 1000-50r
i) In this economy:
(1) Compute national savings
(2) Find equilibrium interest rate.
Hand written solutions are strictly prohibited
Refer to the diagrams. Other things equal, an interest rate increase will: Question 15 options: leave curve A in place but
shift curve B downward. leave curve A in place but shift curve B upward. shift curve A to the left and shift curve B
downward. shift curve A to the right and shift curve B upward
Expanded Rate of Return, r,
and Real Interest Rate, I (%)
Investment ($B)
Investment ($B)
A
Real Domestic Product,
GDP ($B)
B
Chapter 4 Solutions
Macroeconomics
Ch. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - Prob. 10RQ
Ch. 4 - Prob. 1NPCh. 4 - Prob. 2NPCh. 4 - Prob. 3NPCh. 4 - Prob. 4NPCh. 4 - Prob. 5NPCh. 4 - Prob. 6NPCh. 4 - Prob. 7NPCh. 4 - Prob. 8NPCh. 4 - Prob. 9NPCh. 4 - Prob. 1APCh. 4 - Prob. 2APCh. 4 - Prob. 3APCh. 4 - Prob. 4APCh. 4 - Prob. 5APCh. 4 - Prob. 6APCh. 4 - Prob. 7APCh. 4 - Prob. 5WWMDCh. 4 - Prob. 6WWMD
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