Consider An Economy Described By The Following

Consider an economy described by the following: C=3 trillionmpc=0. 8I=1. 3 trilliond=0. 3Gequals=3. 5 trillionx=0. 1Tequals=3 trillionlambda?=1. 5NXequals=?0. 5 trillionr=1f=11. The expression for the MP curveis2. The expression for the AD curveis: 3. Assume that ?=1. 5%. The real interest rate r is __%. The equilibrium level of output is ?Consumption is ?Investment is ?Net exports are?Suppose the Fed increases r to r=2. 5. The real interest rate is ?The equilibrium level of output is ?Consumption is ?Planned investment is ?Net exports are ?When the Fed increased r, output, consumption, plannedinvestment, and net exports all decreased. The Fed increased r because it thinks the economy will (weaken/strengthen) in thefuture, or there is a risk that inflation will (fall/rise) fallrise in the future. I’m trying to review for next chapter, so please also give the solution

Originally posted 2018-07-08 19:55:17. Republished by Blog Post Promoter