Macroeconomics Answers

Using a graph illustrate and explain how the motive for holding money relates to the demand for active balances (L1). Let interest rate (i) be on the X-axis and quality of money (M) on the Y-axis

C = 350 mil + 0.85Yd

I = 175 mil

G = 300 mil

X = 170 mil

Z = 120 mil

T = 0,15Y

Yf = R3100 million

Equilibrium Income: Y = C + I + G + (X - Z)

Disposable Income: Yd = (1 - t)Y

• How much does the government collect in taxes when the economy is in equilibrium?

If there is an increase in the price of dvds , a substitute in production for cds then

C = 350 mil + 0.85Yd

I = 175 mil

G = 300 mil

X = 170 mil

Z = 120 mil

T = 0,15Y

Yf = R3100 million

Equilibrium Income: Y = C + I + G + (X - Z)

Disposable Income: Yd = (1 - t)Y

• What is the value of the marginal propensity to consume in this model?

• Calculate the Multiplier

Given consumption function investment government purchases and taxes with the following function: c=90+0.75(Y-T) I=120 G=180 T= 80

find

a)the aggregate demand function?

b)The equilibrium level of income?

c)the equilibrium level of consumption?

d)the equilibrium level of aggregate demand? e)draw the graph of consumption and aggregate demand to show the equilibrium level of income and consumption?

Suppose that the euro/us dollar exchange rate changes from 1,3 euro per dollar to 1,1 euros per dollar. Then

What is the relationship of the US dollar to bond yields? Do they move in opposite direction since treasury bonds and US dollar are directly related?

What is NDP? Is it a better or worse measure of output than GDP? Explain.

for which African country has dependence on Western Capitalist e conomies been most costly

what are some dimensions in which developing countries show notably wide variations