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Homework answers / question archive /  Calculate GDP and find the multiplier using the following information : C = 100 + 0

 Calculate GDP and find the multiplier using the following information : C = 100 + 0

Economics

 Calculate GDP and find the multiplier using the following information : C = 100 + 0.80 Y , I= 1000 ( G = 0 , EXP = 0 and IMP =0 )


Question # 2 Suppose that the monetary base is $ 20 million , that the general public wish to hold 20% of their their money in cash and the remaining 80% in bank deposits, and that banks wish to hold a 5% cash reserve . What will be the size of the money stock according to the ratios approach ?


Question # 3 Solve for the value of GDP and find the multiplier given the following relationships and values of exogenous variables : C = 100 + 0.8 ( Y – T ) ; IMP = 0.2 5 Y ; I = 1000 ; G = 100 ; T = 100 X ; EXP = 500 .

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