Really great job. Thank you so much. I really love it. Thank you so much for all of your help.
（I desperately need answers, and I hope to get the answer today…）
a) What are rational expectations? Can they influence the outcome of a monetary policy? (5 marks)
b) List three reasons why an economy may choose a fixed exchange rate regime. (5 marks)
Start with a closed economy in equilibrium, and use the IS-LM-FE model to determine the impact of the following shocks on these real macroeconomic variables: output, the real interest rate, consumption, real wage, employment, investment, and the price level. Draw a graph for each.
a) A decline in the working-age population. (5 marks)
b) Volatility in the prices of stocks and bonds. (5 marks)
c) An increase in the corporate tax rate. (5 marks)
d) Reduction in transaction costs of non- monetary assets. (5 marks)
The real money demand is （Md / P） = （Y/4）- 125i, where Y is the total output and i is the nominal interest rate of non-monetary assets. Assume Y = 11,700 and i= 5%. What is the money supply?
Consider the following relationships describing relationships among key economic macro variables in a closed economy:
Cd =500 +0.75 (Y-T ) – 200r
Id = 150 – 200r
T=140 – 0.3Y
M/P = 0.4Y- 300i
Assume that in the short run, price level is P=110, inflation π =3% and the full employment level of output is ????̅ = 2300.
a) Find the equations of the IS and LM curves. (10 marks)
b) Find the short run equilibrium (where IS=LM). (10 marks)
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.
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
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
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
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
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