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MGEB06H3 Study Guide - Midterm Guide: University Of Toronto Scarborough, Real Interest Rate, Loanable Funds

322 views18 pages
violetfish620
21 Aug 2012
School
UTSC
Department
Economics for Management Studies
Course
MGEB06H3
Professor
Jack Parkinson

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Document Summary

Real interest rate: y = c + i + g, 48,000 = 6,000 + 0. 75(48,000 9,600) 400r + 7,000 600r. +9,600: 1,000r =3,400, r = (3400/1000) = 3. 400 (percent) (2 marks) Government spending on goods and services (net) = g = . 2xy = Consumption: c = 6,000 + 0. 75(y-t) 400r* = 33,440. 00 (2 marks) Private saving = spvt = y t c = 4,960. 00. National saving = snat = spvt + sgovt = y c g = 4,960. 00 (1 mark) Real interest rate: y = c + i + g, 48,000 =8,000 + 0. 75(48,000 9,600) 400r + 7,000 600r. +9,600: 1,000r = 5,400, r = (5400/1000) = 5. 400 (percent) (2 marks) Government spending on goods and services (net) = g = 20%xy. Consumption: c = 8,000 + 0. 75(y-t) 400r* = 34,640. 00 (1 mark) Private saving = spvt = y t c = 3,760. 00. Government saving = sgovt = t g = 0 (1 mark) (1 mark) (1 mark)

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