ECONHELP!?!?!
posted by GREG .
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
Respond to this Question
Similar Questions

Economics
If the velocity of circulation is constant, real GDP is growing at 3 percent a year, the real interest rate is 2 percent a year, and the nominal interest rate is 7 percent a year. a)What is the inflation rate? 
Economic
All of the following refer to the Economy of Ecoland:  GDP in 1990 is $1000  Annual inflation is 5% per year from 1991  1995. From 1996  1999, inflation is 10% per year  Real GDP grows at 2% every year a) Calculate real GDP from … 
ECONHELP!!
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? 
ECONHELP!!!
I am at work and am sending this on my cell phone.. BEFORE MY EXAM TONIGHT, 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 … 
ECONcan anyone help
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 … 
econHELP!
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 … 
ECON
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 … 
Macroeconomics
suppose that this year's money supply is $500b, nominal gdp is $10trillion, and real gdp is $5trillion, what is the price level and velocity of money? 
Econ
The nominal interest rate is 12 percent per year in Canada and 8 percent per year in the United States. Suppose that the real interest rates are equalized in the two countries and that purchasingpower parity holds. A friend proposes … 
Macroeconomics
The money supply in Freedonia is $200 billion. Nominal GDP is $800 billion and real GDP is $400 billion. Assuming that velocity is stable, if real GDP grows by 10 percent this year, and if the money supply does not change this year, …