Thanks!!! Consider the following simple model, where a variable with a barunder
ID: 1239412 • Letter: T
Question
Thanks!!!Consider the following simple model, where a variable with a barunder the bottom of it means the variable isfixed. Y = F( K, L) C = C(Y - T), C' (Y - T) <0 G = G =T I = I(r),I'(r)<0 ----------Question------ 1. define total saving, private savingand public saving. In a graph, descibe the equilibrium in themarket for funds. 2. suppose that consumers suddenlywanted to increase their spending, and decrease their savings.Desrive what will happen to output, consumption, governmentspending, taxes, investment and the real interest rate. Use agraph(s) to help explain your answer. Thanks!!!
Consider the following simple model, where a variable with a barunder the bottom of it means the variable isfixed. Y = F( K, L) C = C(Y - T), C' (Y - T) <0 G = G =T I = I(r),I'(r)<0 ----------Question------ 1. define total saving, private savingand public saving. In a graph, descibe the equilibrium in themarket for funds. 2. suppose that consumers suddenlywanted to increase their spending, and decrease their savings.Desrive what will happen to output, consumption, governmentspending, taxes, investment and the real interest rate. Use agraph(s) to help explain your answer. 2. suppose that consumers suddenlywanted to increase their spending, and decrease their savings.Desrive what will happen to output, consumption, governmentspending, taxes, investment and the real interest rate. Use agraph(s) to help explain your answer.
Explanation / Answer
web.ics.purdue.edu/~ychien/MidtermPractice answer.pdf if you look on page 2, that is very similar to your question
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