Multiple Choice
An economy has full-employment output of 5000.Government purchases are 1000.Desired consumption and desired investment are given by Cd = 3000 - 2000r + 0.10Y
Id = 1000 - 4000r
Where Y is output and r is the real interest rate.The real interest rate that clears the goods market is equal to
A) 1) 25%.
B) 2) 50%.
C) 8) 33%.
D) 25.00%.
Correct Answer:

Verified
Correct Answer:
Verified
Q66: The desired level of the capital stock
Q67: The fraction of additional current income that
Q68: With no inflation and a nominal interest
Q69: With a nominal interest rate of 4%,an
Q70: Jane wants to save $1000 of current
Q72: If the government cuts taxes today,issuing debt
Q73: A firm has current and future marginal
Q74: If consumers foresee future taxes completely,a reduction
Q75: A temporary decrease in government purchases would
Q76: If the substitution effect of the real