Find equilibrium y in the basic keynesian model round y to, Ask an Expert

Economics

A 1 year US treasury bond yields 0.5% (0.005 as a decimal), and the 1-year euro bond rate is 1.0%. If the current spot rate is € .7565/ $ , and the current 1-year forward rate is €.7465, then which investment offers the highest return? How would covered interest Arbitrage impact the bond, spot and forward markets?

C=200 + .8YD

I= 500

G= 1100

NX=800 - 0.2Y

YD= Y - .25Y + 125

A) Find equilibrium Y in the basic Keynesian model (round Y to the nearest whole number)

B) What are the values of BS and NX at the equilibrium level of Y?

C) Find the value of savings at equilibrium Y.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9442921

Have any Question?Write your Review or question?

Related Questions in Business Economics

Interested in learning more about its fans the marketing

Interested in learning more about its fans, the marketing office of the Arena Football League (AFL) conducted a survey at one of its games. The survey had 952 respondents, 679 males and 273 females. Out of the 952 total ...

You spoke with seven people you know and found that they

You spoke with seven people you know and found that they went out 2, 0, 1, 5, 0, 2, and 3 times last week. You then would choose to calculate a 95% (or another level) confidence interval for the population mean.

Indifference curve and budget lineannie has an income of

Indifference Curve and Budget Line Annie has an income of $180 an hour. Popcorn costs $6 a bag, and costs $4 a six-pack cola a. Draw a graph of Annie's budget line with six-pack of cola on the x-axis , and popcorn on th ...

What are the main things to remember about elasticity

What are the main things to remember about elasticity, supply and demand, tax incidence, government controls on the market, and economic theories?

1 explain the reason for measuring government production at

1. Explain the reason for measuring government production at cost? 2. What is the main shortcoming in valuing government production in this way?

Regional blocs like the eu are straining the british have

Regional blocs like the EU are straining. The British have voted to Brexit! What has caused the tension and what does the future hold - for Brexit and beyond?

The proposed american health care act will issue refundable

The proposed American Health Care Act will issue refundable tax credits (i.e. your paid health insurance premium can be refunded as tax credit) and eliminate the Obamacare subsidies (i.e. end the federal funding on Medic ...

A sample of 36 us households is taken and the average

A sample of 36 U.S. households is taken and the average amount of newspaper garbage or recycling is found to be 27.8 pounds with a standard deviation of 2 pounds. Estimate, with 99% confidence, the mean amount of newspap ...

Suppose we have a simple society with only 2 people 1

Suppose we have a simple society with only 2 people. 1 person is rich and earns $100,000 per year. 1 person is poor and earns $25,000 per year a) What percentage of total income does the rich person earn? b) Now suppose ...

While doing data entry you realize that you have made a big

While doing data entry, you realize that you have made a big mistake. every data value in your mistaken dataset is ten points less than it should have been. The standard deviation of the mistaken dataset was 201.2. You c ...

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 Business Economics Expert