Friday
December 19, 2014

Homework Help: Economics

Posted by Eric on Friday, December 7, 2012 at 9:34pm.

1. Your country faces the following

In the product market: IS = 6,752 - 37Y
In the money market: LM = 1.75
In the BOP market: BP = -684 + 62Y

a. Graph the above conditions. Is this an example of the classical case? If yes, explain. If no, show how it would look if it were the classical case.

b. What is the equilibrium level of GDP and the interest rate? Is there a BOP equilibrium or a BOP deficit/surplus. If the money supply is increased by 23% what is the new equilibrium GDP and interest rate? What happens to the BOP? Explain.

c. The country devalues its currency. given the above conditions, will this eliminate any BOP deficit? Explain.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Economics M/C - The market in which the assumption of continuous market clearing...
Economics M/C - Hi, I am having difficulty determining the answer for the ...
economics - out of the four economic market models : competitive market, ...
economics - out of the four economic market models : competitive market, ...
Economics - Describe two criteria used to assess a marketís potential for a new ...
economics - How can I determine if two goods are in the same market or market ...
Inter - 19) The process of naming broad product-markets and then segmenting them...
economics - Explain how resources are allocated in a market economy. what should...
economy - consider a perfectly competitive market in which all firms have the ...
Economics/Math - Suppose there are four firms in a competitive market and that ...

Search
Members