(Answered) Consider an open economy with the following consumption

Economics

Consider an open economy with the following consumption, investment, and tax functions

C = 40 + 0.80YD
T = 10 + 0.10Y I = 38 + 0.15Y

Write the model in matrix form. Assume the government expenditure G0 = 110, export X0 = 40, and import M0 = 90. What are the equilibrium output, consumption, investment, and taxes in this economy?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91545129
Price:- $20

Verified Expert

Priced at $40 Now at $20, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question suppose the utility function for a consumer is

Question: Suppose the utility function for a consumer is given by U = 5XY. X is the amount of Good X and Y is the amount of Good Y. A) Neatly sketch the utility function B) Does this utility function exhibit diminishing ...

Question what is a just society which of the three theories

Question: What is a just society? Which of the three theories of economic justice discussed in Chapter Three (utilitarian, libertarian, or Rawls's theory) do you feel would best create such a society? Why have you select ...

Quesiton mobile social networking is the next frontier in

Quesiton: Mobile social networking is the next frontier in technology as companies race to adapt platforms like Facebook to our cell phones. 1. What do you see as the opportunities and the threats as we inevitably move t ...

Question 1 what motivations are assumed to underlie the

Question: 1. What motivations are assumed to underlie the "public interest" and the "economic" theories of legislation (self-interest paradigm)? 2. Must a theory be accurate 100 percent or even 80 percent of the time to ...

Question in the wall street journal article included in

Question: In the Wall Street Journal article included in this week's lesson, what change in the small drugstore chain's product differentiation strategy has helped lift profitability? What has been responsible for the su ...

Question what are the major differences in translating

Question: What are the major differences in translating liabilities between the current rate method and the temporal method? The response must be typed, single spaced, must be in times new roman font (size 12) and must f ...

Question after the world pulled out of the great depression

Question: After the world pulled out of the Great Depression of the 1930s, many forecasters expected a repeat of that decline after World War II. Now, the chances of another depression of that duration seem extremely rem ...

Question what is the equivalent amount in year ten of an

Question: What is the equivalent amount in year ten of an expenditure of $5,000 in year one, $6,000 in year two, and amounts increasing by $1,000 per year through year ten? The response must be typed, single spaced, must ...

Question imagine that you have decided to open a small ice

Question: Imagine that you have decided to open a small ice cream stand on campus called "Ice-Campusades." You are very excited because you love ice cream (delicious!) and this is a fun way for you to apply your business ...

Question assume congress is considering reinstating a 10

Question: Assume Congress is considering reinstating a 10% investment tax credit in order to stimulate the economy. The bill would apply to purchases of all new capital equipment, so it would increase the budget deficit ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert