Author Question: Forward guidance refers to central banks A) setting long-term interest rates. B) engaging in ... (Read 65 times)

Mr. Wonderful

  • Hero Member
  • *****
  • Posts: 866
Forward guidance refers to central banks
 
  A) setting long-term interest rates.
  B) engaging in monetary policy to offset the negative side-effects of the government's fiscal policies.
  C) telling the public what future monetary policy will be.
  D) simultaneously reducing unemployment and inflation.

Question 2

C = 2,800 + 0.9Y
  I = 750
  G = 1,200
  NX = 150
 
  Given the equations for C, I, G, and NX above, what is the equilibrium level of GDP (Y)?
 
  What will be an ideal response?



bitingbit

  • Sr. Member
  • ****
  • Posts: 323
Answer to Question 1

C

Answer to Question 2

Y = C + I + G + NX.
Y = 2,800 + 0.9Y + 750 + 1,200 +150.
Y = 4,900 + 0.9Y.
0.1Y = 4,900.
Y = 49,000.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

For a complete list of videos, visit our video library