The following set of equations describe an economy: C = 14,400 + 0.5 (Y – T) – 40,000r Ip = 8,000 – 20,000r G = 7,800 NX = 1,800 T= 8,000 %3D Y* = 40,000 Suppose that the real interest rate (r) is 10%. Is the economy in long run equilibrium? If not, what real interest rate should central bank set to restore the economy back to the long run equilibrium? And what methods can central bank use to adjust the interest rate? (Round your answer to 2 decimal

Q: what are the Benefits and Costs of Delinquency for borrowers

A: Default and delinquency are two financial terms that are used for loans representing the same…

Q: do you think the possession of marijuana should be decriminalized?

A: As many states are decriminalizing the possession of limited amount of marijuana for medicinal…

Q: Paying for snekers using a credit card is an example of a person borrowing

A: Income and expenditure do not remain the same over the time period. Over the time period, the income…

Q: What is a situational example of practicing the rights of employees in a business

A: Employee rights include the right to organize and bargain collectively, the right to work hours and…

Q: Differentiate between practice of theories and models of information literacy

A: The practice of theories: This will provide the information in a structured manner, that is…

Q: What is the European Court of Justice

A: Justice: It refers to an idea on morals and regulation that implies that individuals act in a manner…

Q: hich media access control method needs a timer to prevent lock-up by clients not answering

A: The media access control method which needs a timer to prevent lock-up clients (by not answering) is…

Q: In your own opinion, what would happen to an operation or mission in military if there were no…

A: Communication is very important for handling the mission in the military. There are many individuals…

Q: What is the government's role workplace safety regulations

A: Workplace safety regulations are essential for the safety of workers and to prevent their…

Q: How did this pandemic affect the demographic profile of the Philippines? Site some examples.

A: Demography is the science of studying human populations. The study of population growth, structure,…

Q: pIivate investment

A: Government's fiscal policy leads the situation of crowding out.

Q: How did computers and communications impact the global economy?

A: Answer -   Global Economy:- It is addition of the all the domestic economy is termed as the global…

Q: discuss which country as a excellent border patrol system

A: Border security is very essential in order to provide a peaceful environment in an economy. If the…

Q: the increasing integration of eocnomies cultures and institutions across the world

A: People can share culture, institutions and other social-economic among each other.

Q: describing the political, economic, geographic, ethnic of Mexico?

A: Mexico is a diverse and complex country with a rich cultural heritage and a complex political and…

Q: (Collusion and Cartels) Use revenue and cost curves to illustrate and explain the sense in which a…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Explain IMF IN DETAIL

A: IMF stands for International Monetary Fund.

Q: How will project number help the political party in power

A: There can be various actions taken up by the government to be in power and stabilize its position.

Q: what is the Effect on the Supply of Microcredit

A: Microcredit is the lending of money in small portions. Microcredit financing is done by many small…

Q: How would society/world be impacted by lethal autonomous weapon systems?

A: Lethal autonomous weapons are a form of autonomous defence force that can find and engage targets on…

Q: Does government regulations is necessary in an economy. Describe it in a proper way.

A: In its widest meaning, regulation refers to the process through which the government imposes rules…

Q: how can we better monetize environmental concerns to protect what quality we have left?

A: Environmental economics: It refers to investigating the economies of the two sides of average…

Q: Why are people closest to local government?

A:

Q: what should or should not be done to prevent school bullying?

A:

Q: What is abandonment?

A: Abandonment is an act of leaving something in arrears or ending something all in all.

Q: Explain the estimated and economic impacts that labelling country of origin products has on…

A: As per customer labelling theory and applications, compulsory packaged food labelling is suitable…

Q: Expain to cheat after  forming the cartel

A: An entity created to maintain supply in order to manipulate or control prices through a formal…

Q: strategies African countries to use to continue attracting FDI for the region

A: * ANSWER :-

Q: What sort of people are likely to have limited computer and Internet access?

A: Internet has been a common phenomena in today's world but it hasn't been that common for everyone.…

Q: What are the major industries in Canada

A: Canada has sizeable industries including automobile, aircraft, energy, power, and technological…

Q: After reviewing improving global business ethics, how do you think consumers can influence the…

A: Since the beginning of this century factors like higher literacy, consumer rights awareness,…

Q: To what extent were the actions taken by Teens take charge in Save SYEP successful?

A: Summer Youth Employment Program (SYEP) is an employment program in NYC that provides career…

Q: What is underemployment

A: Underemployment is the measurement of the economy's jobs and labor efficiency. It explores how…

Q: What is the biggest industry today.

A: An industry is known as the branch of economy that produces raw material, goods, or other services…

Q: How can our customers influence us?

A: A customer refers to any person who buys a good or service from a business. Any business is based on…

Q: When should the government regulate business?

A: The government should regulate business when firms in that business start doing mal-practices or the…

Q: what is the difference between an opportunity and a threat

A: In economics, producers have to deal with various market uncertainties that can positively or…

Q: What is Facebook's International Strategy? Please answer I will rate

A: Facebook has its eyes set on worldwide control, and it's rapidly executing its arrangement to…

Q: Relates to how the customer views the ability of theproduct to meet his/her objectives.

A: Customer is the decider of product rating in modern era of consumerism

Q: he industries in South Africa, such as housing and healthcare, are controlled by the government.…

A: The conclusions that can be drawn about the South African economy based on the given information is…

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.