Respuesta :
Answer:
Answer explained below
Explanation:
(1)
IS Model:
Y = C + I + G + X - M
Y = 100 + 0.5Y + 100 - 20r [G = X = M = 0]
(1 - 0.5)Y = 200 - 20r
0.5Y = 200 - 20r
Y = 400 - 40r ......(1) [IS Equation]
LM Model:
Money demand (Speculative + Transactions demand) = Money supply
100 - 10r + 0.1Y = 80
0.1Y = 10r - 20
Y = 100r - 200 .....(2) [LM Equation]
(2) When IS & LM intersect, from part (1):
400 - 40r = 100r - 200
140r = 600
r = 4.29
Y = 100r - 200 = (100 x 4.29) - 200 = 429 - 200 = 229
(3)
There will be four regions as explained below:
In region I, there is excess supply in both goods and money market, which puts downward pressure on both interest rate and output.
In region II, there is excess demand in goods market, but excess supply in money market, which puts upward pressure on output & downward pressure on interest rate.
In region III, there is excess demand in both goods and money market, which puts upward pressure on both interest rate and output.
In region IV, there is excess supply in goods market, but excess demand in money market, which puts downward pressure on output & upward pressure on interest rate.
In this exercise we have to use the knowledge of finance to calculate the fintion in question informed in the text, in this way we find that:
a) [tex]Y = 100r - 200[/tex]
b) [tex]Y = 229[/tex]
c) In domain I, there exist excess supply fashionable both personal possessions and currency accepted as exchange for goods market. In domain II, there happen excess demand fashionable goods package and sell goods, but excess supply fashionable money package and sell goods. In domain III, there exist excess demand fashionable both merchandise and money package and sell goods.In region IV, skilled exist excess supply fashionable goods package and sell goods, but excess demand fashionable money package and sell goods.
a)Then given the following formula, we can calculate:
[tex]Y = C + I + G + X - M\\Y = 100 + 0.5Y + 100 - 20r [G = X = M = 0]\\(1 - 0.5)Y = 200 - 20r\\0.5Y = 200 - 20r\\Y = 400 - 40r[/tex]
b) Knowing that the LM model is given by the formula below, we can make the calculations as:
[tex]Money \ demand \ (Speculative \ + \ Transactions \ demand) =\ Money \ supply[/tex]
They are doing the following calculations, we have:
[tex]100 - 10r + 0.1Y = 800.1\\Y = 10r - 20\\Y = 100r - 200[/tex]
Continuing the calculation of the LM model is:
[tex]400 - 40r = 100r - 200\\140r = 600r = 4.29\\Y = 100r - 200 = \\(100 * 4.29) - 200 = 429 - 200 = 229[/tex]
c) There will be four regions asyou can see:
- Region I, skilled is overabundance of something supply in two together goods and services package and sell goods, which puts earthward pressure on two together interest rate and something produced.
- Region II, skilled is overabundance of something demand fashionable goods package and sell goods, but excess supply fashionable money package and sell goods, that puts upward pressure on something produced & downward pressure ahead of interest rate.
- Region III, skilled is overindulgence in personal desires demand fashionable both personal possessions and money package and sell goods, which puts upward pressure in contact two together interest rate and something produced.
- Region IV, skilled is overindulgence in personal desires supply fashionable goods package and sell goods, but excess demand fashionable money package and sell goods, that puts downward pressure ahead of output & upward pressure ahead of interest rate.
See more about finances at brainly.com/question/10024737
