Find out equilibrium value of income and interest rate, Microeconomics

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Find out equilibrium value of income and interest rate

In a Hypothetical economy,

C = 124 +.75 (DISPOSIBLE INCOME)
I = 60 - 9 r
G = 156
NETXPORTS = 38-.05Y

The government levies a 20% proportional tax, therefore

Taxes = .20Y
Also
Md = .05Y+22+ 120
R
Ms = 100+ 11 r

A) Determine the equilibrium value of income Y, and the interest rate , R.

B) Check that leakages equal injections.

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Microeconomics: Find out equilibrium value of income and interest rate

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Microeconomics: Find out equilibrium value of income and interest rate

Reference No:- TGS0519274

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Find out equilibrium value of income and interest rate

Reference No:- TGS0519274

Recent Questions Asked Microeconomics

Q : Discuss the target market and provide a rationale for this

Q : Inheritance of genes following mendel postulates

Q : What amount should shelly invest

Q : Death of a chief executive officer

Q : Find out equilibrium value of income and interest rate

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