Posted by User_10700 11/7/2016 in Economics

Due in less than 5 hours. 15:00 CET......

Due 11/07/2016

Due in less than 5 hours. 15:00 CET.
Size: 1 page writing (maximum) + figures.

Suppose we are in a situation where we have very low unemployment, and we are close to maximum capacity. The central bank is concerned about inflation, reducing the monetary base by increasing the rate that banks deposits with the central bank. You should examine what consequences this has for the national economy. The work requirement is to answer the questions below.


a) Explain and show in a figure what happens to interest rates when the monetary base decreases.

b) Use the answer in a: argument for what will happen with fixed investment (I).

c) Use the answer you get in b: show mathematically and explain what happens to the consumer (C) domestic product (R), and savings. Here you can assume that export (A), imports (B), and public consumption (G) does not change. You can also set the marginal consumption propensity (a) to be 0.8. Changes in Investments (I) is either 2 billion up or down (whether (I) goes up or down you will have arrived to in task b)

d) Why is it really unrealistic to expect that imports and exports do not change, as we assume in task c?

e) Use your answer from c about change in R: Explain and show in a figure how you expect this will affect the nations export of goods.
Files only available to project owner and assigned user
Status: Completed
Bids (7) for $65 asking price
$94 average bid
$149
1stclasshonour
Rated 9.46/10, $10764 earned across 151 assignments
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
$65
Lekish
Rated 8.71/10, $760.0 earned across 27 assignments
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
$120
ticha7
Rated 8.55/10, $2399.0 earned across 45 assignments
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
$63
TheBest
Rated 9.51/10, $4215.0 earned across 174 assignments
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
$65
superbwriter
Rated 9.34/10, $1990.0 earned across 54 assignments
  • (Only the project owner and message sender may view this message)
  • (Only the project owner and message sender may view this message)
$100
bishoplampz
Rated 9.06/10, $22344.0 earned across 556 assignments
  • (Only the project owner and message sender may view this message)
$100
richwhite
Rated 9.29/10, $2971.0 earned across 104 assignments
  • (Only the project owner and message sender may view this message)