Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. desired consumption is cd = 20 + 0.5y – 0.1

Desired consumption is Cd = 20 + 0.5Y – 0.1r and desired investment is Id = 30...

80.2K

Verified Solution

Question

Economics

Desired consumption isCd = 20 + 0.5Y – 0.1r anddesired investment is Id = 30 – 1.5r.G is 15 and Y is 100. Real money demand isMd/P = 5 + Y – 0.3i.Provide economic reasons to interpret:

        (a) the consumption function with respect to its components.

  1. the investment function with respect to its components.

Answer & Explanation Solved by verified expert
3.8 Ratings (674 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Following are the advantages of double beam instrumentation EXCEPT A Compensate for all but most...

Physics
Q

Larkspur Corporation had the following taxinformation.YearTaxable IncomeTax RateTaxes Paid2015$294,000...Larkspur Corporation had the following taxinformation.YearTaxable...

Accounting
Q

Consider a four-year project with the following information: initial fixed asset investment = $502325; straight-line depreciation to...

Finance
Q

For a BCC iron-carbon alloy that contains 0.23 wt% C, calculate the fraction of unit cells...

Mechanical Engineering
Q

A population, obeying the logistic equation, begins with 1000 bacteria, then doubles itself in 10 hours....

Advance Math
Q

On January 2, 2018, Athol Company bought a machine for use in operations. The machine has...

Accounting
Q

What can be inferred from the following statement? "Though the debate continues to rage on...

Biology
Q

Stage clip Coaxial stage controls Move the slide right left and backward forward Secures the...

Biology
Q

Find the sum of the infinite geometric series if possible If not possible enter IMPOSSIBLE...

Calculus
Q

Which are equivalent expressions to 4 x Select all that apply 3 4x 3 3...

Algebra
Q

Brown Manufacturing is trying to determine the equivalent units for conversion costs with 5,000 units...

Accounting
Q

Imagine you take out a loan for $2000 at a 6% APR compounded monthly. You...

Finance