What are the effects of capital destruction on other macro variables, including con- sumption (C), saving (S), investment (I), net exports (NX), loanable funds (L), real balance (m = M/P), real interest rate (r), nominal interest rate (R), real rental (rk), and nominal rental (R)? Please "circle" the effects on these variables on a table of the following form for the short run and the long run separately. macro variable consumption (C) saving (S) investment (I) net exports (NX) loanable funds (L) real balance (m = M/P) real interest rate (r) nominal interest rate (R) real rental (r) nominal rental (R) (a) (b) rise fall constant ambiguous rise fall constant ambiguous rise fall constant ambiguous rise fall constant ambiguous constant rise fall constant ambiguous rise fall constant rise fall rise fall constant rise fall constant rise fall constant ambiguous ambiguous ambiguous ambiguous ambiguous your answer

What are the effects of capital destruction on other macro variables, including con- sumption (C), saving (S), investment (I), net exports (NX), loanable funds (L), real balance (m = M/P), real interest rate (r), nominal interest rate (R), real rental (rk), and nominal rental (R)? Please "circle" the effects on these variables on a table of the following form for the short run and the long run separately. macro variable consumption (C) saving (S) investment (I) net exports (NX) loanable funds (L) real balance (m = M/P) real interest rate (r) nominal interest rate (R) real rental (r) nominal rental (R) (a) (b) rise fall constant ambiguous rise fall constant ambiguous rise fall constant ambiguous rise fall constant ambiguous constant rise fall constant ambiguous rise fall constant rise fall rise fall constant rise fall constant rise fall constant ambiguous ambiguous ambiguous ambiguous ambiguous your answer

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: An Introduction To Basic Macroeconomic Markets

Section: Chapter Questions

Problem 9CQ

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Y = E(K, L) = AK«L1-« A = 1, K = 3000, L = 9000 - a = 0.6 - | = |(r) = 1200 – 10r C= C (Y-T) = 0.75 (Y-T) T= 800 G = 600 a) Find the equilibrium real interest rate the goods and services market. b) What is the equilibrium real interest rate in the loanable funds market? (Hint: Think about how the goods and services market equilibrium condition relates to the loanable funds market equilibrium condition)
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The economy of Dream Island, which is isolated from the rest of the world, has the supply of loanable funds schedule and the demand for loanable funds schedule shown in the table below. As it happens, all of the supplies of loanable funds are from households' savings and the entre demand for loanable funds is from firms' investment demand. Real interest rate (percent per year) Supply of loanable funds (2005 dollars) Demand for loanable funds (2005 dollars) 5 2,000 5,000 7 3,000 4,000 9 4,000 3,000 11 5,000 2,000 a) Draw the demand and supply curves.
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Assume that a national restaurant firm called BBQ builds 10 new restaurants at a cost of $ 1 million per restaurant. It outfits each restaurant with an additional $ 200,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 200,000 shares of stock at $ 30 per share. A) What is the amount of economic investment that has resulted from BBBQ's actions? ( in millions) B)How much purely financial investment took place?
Explain how the current level of investment depends on the following factors: 1) the current level of national income; 2) the current level of the interest rate; 3) the expected net profits in future time periods; 4) the expected interest rates in future time periods; 5) the current level of profit.
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Question:Describe and analyse the main macroeconomic issues in Malaysia for the period from 2010 to 2015. Go to: http://www.tradingeconomics.com/malaysia/gdp-growth, http://www.tradingeconomics.com/malaysia/gross-national-product or other sources of reference to obtain the necessary information. *** 2500 to 3000 words excluding references RUBRICS Introduction to macroeconomics : Clear and detailed introduction which covered the definition, issues, policies and objectives of macroeconomics. Identification and description of economic growth and living standards in Malaysia : Able to identify and describe the changes in economic growth and living standards over the selected period. Provided adequate data and clear reasons for the changes. Identification and description on unemployment in Malaysia : Able to identify and describe the changes in unemployment over the selected period. Provided adequate data and clear reasons for the changes. Identification and…