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Homework answers / question archive / Treasury Bonds are Group of answer choices a store of value, but not a medium of exchange

Treasury Bonds are Group of answer choices a store of value, but not a medium of exchange

Economics

Treasury Bonds are

Group of answer choices

a store of value, but not a medium of exchange.

a medium of exchange, but not a store of value.

neither a store of value nor a medium of exchange.

both a store of value and a medium of exchange.

d 21. Consider the following IS-LM model: C = co +61 (Y – T) I = bo + b Y – bai M d¡Y – dzi ? M P ? a. where (b+c) <1 b. Derive IS equation. Derive and determine its sign. [5 points]- di di c. b. Derive LM equation. Derive and determine its sign. [5 points]- d. c. Assume that LM curve is ** dY t dY () M P =dY Solve for the equilibrium output and the equilibrium interest rate. How does output change with changes in tax? (5 points]-

Problem 1: (40 points) GD Governme nt expenditur e Aggrega te Expendi ture P GDP/ Income 8400 Consumpti on Investme nt Inventori es Exports Imports will 6800 1200 1000 400 600 9200 7400 1200 1000 400 600 8000 1200 1000 10000 10800 400 600 400 600 1200 1000 8600 9200 11600 1200 1000 400 600 1. Fill in the blanks. Find the equilibrium GDP. 2. Calculate the MPC and the multiplier. 3. If the government wants to set a new equilibrium at 12000 by how much it needs to increase the government expenditure?

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