Homework Help: ECON-can anyone help

Posted by greg on Monday, October 22, 2007 at 10:50pm.

CAN ANYONE PLEASE HELP//

1. In the Country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate?

2. The goverment raises taxes by $100 billion. If the marginal propensity to consume is 0.6, what happens to the following? Do they rise or fall? By what amounts?

a. Public saving

b. Private saving

c. National saving

d. Investment

ECON-can anyone help - economyst, Tuesday, October 23, 2007 at 10:43am
Do a little research, then take a shot. What do you think? I will be glad to critique your answer. But, I am reluctant to just give you the answer.

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