Assume the model: | StudyDaddy.com

Assume the model: And pay attention to the model in answering the questions

Y = C + I + G + X – M

C = a + b Yd   where a > 0 and 0 < b < 1

I = f (i)             but I ≠  f (Y)        ie, MPI = 0

G = Go

Ms = Mso       Ms = money supply/stock

Tx = Txo ……..meaning that Tx ≠ f ( Y )

Md = Mt(Y)+ Ml(i)  [Mt = transactions demand; Ml = liquidity preference demand]

X = Xo     X = exports

M = Mo + mY  where Mo is autonomous imports, and m is the marginal propensity to import

In each of the following cases, indicate the effect of the given autonomous change (or policy measure) on each of the listed variables. In each case indicate whether the listed variable increases in value, decreases, or does not change.

Note: Answer beside the listed variable. For example, if in I an increase in the money supply does not bring about a change interest rates, write “does not change” beside “interest rates” at I, 1. And if an increase in the money supply causes a decrease in the level of income, write “decreases” beside “level of income” at I, 2

I.     An increase in the money supply:

1.   Interest rates

2.   Level of income

3.   Imports

4.   Investment

5.   Government spending

II.   A decrease in the public’s liquidity preference:

6.    Level of income

7.    Investment

8.    Saving

9.    Consumption

10.        Exports

III. An increase in the marginal propensity to import:

11.        Income

12.        Amount of money demanded for transactions purposes

13.        Bond prices

14.        Saving

15.        Investment

16.        Consumption

17.        Money supply

18.        Exports

IV.   An increase in exports:

19.        Income

20.        Interest rates

21.        Imports

22.        Money supply







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10