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12 Feb 2018
Money
Supply Money
Demand Interest
Rate Investment at Interest
Rate Shown Potential Real GDP Actual Real GDP at Interest
Rate Shown $500 $800 3% $80 $350 $390 500 700 4 70 350 370 500 600 5 60 350 350 500 500 6 50 350 330 500 400 7 40 350 310
1. What is the equilibrium interest rate in Moola? %
2. What is the level of investment at the equilibrium interest rate? $
3. There is a recessionary output gapinflationary output gap of $______ billion.
Given money demand, by how much would the Moola central bank need to change the money supply in order to close the output gap?
4. IncreaseDecrease the money supply by $________ billion
5. What is the (expenditure) multiplier in Moola?
Money Supply | Money Demand | Interest Rate | Investment at Interest Rate Shown | Potential Real GDP | Actual Real GDP at Interest Rate Shown |
$500 | $800 | 3% | $80 | $350 | $390 |
500 | 700 | 4 | 70 | 350 | 370 |
500 | 600 | 5 | 60 | 350 | 350 |
500 | 500 | 6 | 50 | 350 | 330 |
500 | 400 | 7 | 40 | 350 | 310 |
1. What is the equilibrium interest rate in Moola? %
2. What is the level of investment at the equilibrium interest rate? $
3. There is a recessionary output gapinflationary output gap of $______ billion.
Given money demand, by how much would the Moola central bank need to change the money supply in order to close the output gap?
4. IncreaseDecrease the money supply by $________ billion
5. What is the (expenditure) multiplier in Moola?
7
answers
0
watching
899
views
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