Solved

An Economy Has Full-Employment Output of 5000

Question 16

Multiple Choice

An economy has full-employment output of 5000.Government purchases are 1000.Desired consumption and desired investment are given by
An economy has full-employment output of 5000.Government purchases are 1000.Desired consumption and desired investment are given by = 3000 - 2000r + 0.10Y = 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%. = 3000 - 2000r + 0.10Y
An economy has full-employment output of 5000.Government purchases are 1000.Desired consumption and desired investment are given by = 3000 - 2000r + 0.10Y = 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%. = 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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q7: The Ricardian equivalence proposition suggests that a

Q14: Suppose the nominal interest rate is 6%,the

Q19: If an investor has a tax rate

Q24: How would the desired capital stock be

Q31: Draw a diagram showing the determination of

Q32: If the rate of depreciation increases,then user

Q38: A curve that connects all the consumption

Q57: Calculate the user cost of capital of

Q58: A temporary supply shock,such as a drought,would<br>A)increase

Q74: If consumers foresee future taxes completely,a reduction