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sineoko [7]
1 year ago
8

An economy has full-employment output of 5000. Government purchases are 1000. Desired consumption and desired investment are giv

en by
Cd = 3000 - 2000r + 0.10Y
Id = 1000 - 4000r
where Y is output and r is the expected real interest rate. The real interest rate that clears the goods market is equal toA. 25.00%.B. 8.33%.C. 2.50%.D. 1.25%.
Business
1 answer:
enyata [817]1 year ago
5 0

Answer:

Option (B) is correct.

Explanation:

Given that,

Full-employment output = 5,000

Government purchases = 1,000

Desired consumption: Cd = 3000 - 2,000r + 0.10Y

Desired investment: Id = 1000 - 4,000r

Y = Cd + Id + Gd

Y = (3000 - 2000r + 0.10Y) + (1,000 - 4,000r) + 1,000

Y - 0.10Y = 5,000 - 6,000r

0.90Y = 5,000 - 6,000r

At full employment output level of 5,000,

0.90(5,000) = 5,000 - 6,000r

4,500 = 5,000 - 6,000r

6,000r = 500

r = 0.0833 or 8.33%

Therefore, the real interest rate that clears the goods market is equal to 8.33%.

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Answer:

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Explanation:

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1 year ago
1. An assembly line with 30 activities is to be balanced. The total amount of time to complete all 30 activities is 60 minutes.
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Answer:

a. What are the maximum and minimum cycle times?

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1 year ago
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1 year ago
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Answer:

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One-way analysis of variance (ANOVA) is used to calculate the significance of the difference between three and more independent means in a normally distributed series. ANOVA compares the arithmetic means of three or more groups alone; ANOVA result is also significant when at least one of these comparisons is significant. To measure the significance it will have the relation to the regression analysis that's why there will be dependent and independent variables as well.

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