Macroeconomics (9th Edition)
Macroeconomics (9th Edition)
9th Edition
ISBN: 9780134167398
Author: Andrew B. Abel, Ben Bernanke, Dean Croushore
Publisher: PEARSON
Question
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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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