The formula for the is curve can be derived from the formula Y = [CO+MPC(Y-T)]+1+G. When the IS curve is derived, I and G are assumed constant and Y varies based on the interest rate r. Assuming that CO=50B, MPC = 80, T=200B, I = 120B-10B (r), and G = 250B, the derived IS curve is (A),Y=1,300B - 50B (r) B ) Y=1, 400B +40B (r) C) Y=1, 300B +50B (r) D) Y=1, 400B - 50B (r) Using the IS formula you calculated in the problem above, what is the value of Y if r = 10(10%) ? A) 1,000B B) 900B C) 800B D) 700B Using the IS formula that you derived above, what is the value of Y ifr = 12 (12%) ? A) 1,000B B) 900B C) 800B D) 700B Assume that the ,M,d money demand function is (=Y-50r, where is the interest rate. The money supply M is 2,000B and the price level P is 4. Use this information to derive the LM curve function/formula. The LM function/formula is A ) Y=650B + 50B (r) B) Y = 650B +40B (r) C) Y = 500B-60B (r) D) Y = 500B + 50B (r) D) 50. ၁ The formula for the IS curve can be derived from the formula Y = [Co+ MPC(Y-T)]+1+G. When the IS curve is derived, T and G are assumed constant and Y varies based on the interest rate r. Assuming that Co=50B, MPC = .80, T=2008, 1= 120B-108(r), and G-2508, the derived IS curve is c) D) 51. A) Y=1,300B-SOB(r) Y=1,400B+40B(r) Y = 1,300B +50B(r) Y=1,400B-50B(r) Using the IS formula you calculated in the problem above, what is the value of Y if r = 10 (10%)? 1,000B 900B 800B 700B Using the IS formula that you derived above, what is the value of Y if r = 12 (12%)? 52. A) 1,000B 900B 800B D) 53. 700B Assume that the money demand function is (M/P) =Y-50r, where r is the interest rate. The money supply M is 2,000B and the price level P is 4. Use this information to derive the LM curve function/formula. The LM function/formula is Y=650B +50B(r) A) B) Y = 650B + 408(r) c) Y=5008-608(r) D) Y = 5008 +508(r)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
ChapterB: Differential Calculus Techniques In Management
Section: Chapter Questions
Problem 7E
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The formula for the is curve can be derived from the formula Y = [CO+MPC(Y-T)]+1+G. When the IS curve is
derived, I and G are assumed constant and Y varies based on the interest rate r. Assuming that
CO=50B, MPC = 80, T=200B, I = 120B-10B (r), and G = 250B, the derived IS curve is (A),Y=1,300B - 50B (r) B
) Y=1, 400B +40B (r) C) Y=1, 300B +50B (r) D) Y=1, 400B - 50B (r) Using the IS formula you calculated in the
problem above, what is the value of Y if r = 10(10%) ? A) 1,000B B) 900B C) 800B D) 700B Using the IS formula that
you derived above, what is the value of Y ifr = 12 (12%) ? A) 1,000B B) 900B C) 800B D) 700B Assume that the
,M,d
money demand function is (=Y-50r, where is the interest rate. The money supply M is 2,000B and the price
level P is 4. Use this information to derive the LM curve function/formula. The LM function/formula is A
) Y=650B + 50B (r) B) Y = 650B +40B (r) C) Y = 500B-60B (r) D) Y = 500B + 50B (r)
D)
50.
၁
The formula for the IS curve can be derived from the formula Y = [Co+ MPC(Y-T)]+1+G. When
the IS curve is derived, T and G are assumed constant and Y varies based on the interest rate r. Assuming
that Co=50B, MPC = .80, T=2008, 1= 120B-108(r), and G-2508, the derived IS curve is
c)
D)
51.
A)
Y=1,300B-SOB(r)
Y=1,400B+40B(r)
Y = 1,300B +50B(r)
Y=1,400B-50B(r)
Using the IS formula you calculated in the problem above, what is the value of Y if r = 10 (10%)?
1,000B
900B
800B
700B
Using the IS formula that you derived above, what is the value of Y if r = 12 (12%)?
52.
A)
1,000B
900B
800B
D)
53.
700B
Assume that the money demand function is (M/P) =Y-50r, where r is the interest rate. The
money supply M is 2,000B and the price level P is 4. Use this information to derive the LM curve
function/formula. The LM function/formula is
Y=650B +50B(r)
A)
B)
Y = 650B + 408(r)
c)
Y=5008-608(r)
D)
Y = 5008 +508(r)
Transcribed Image Text:The formula for the is curve can be derived from the formula Y = [CO+MPC(Y-T)]+1+G. When the IS curve is derived, I and G are assumed constant and Y varies based on the interest rate r. Assuming that CO=50B, MPC = 80, T=200B, I = 120B-10B (r), and G = 250B, the derived IS curve is (A),Y=1,300B - 50B (r) B ) Y=1, 400B +40B (r) C) Y=1, 300B +50B (r) D) Y=1, 400B - 50B (r) Using the IS formula you calculated in the problem above, what is the value of Y if r = 10(10%) ? A) 1,000B B) 900B C) 800B D) 700B Using the IS formula that you derived above, what is the value of Y ifr = 12 (12%) ? A) 1,000B B) 900B C) 800B D) 700B Assume that the ,M,d money demand function is (=Y-50r, where is the interest rate. The money supply M is 2,000B and the price level P is 4. Use this information to derive the LM curve function/formula. The LM function/formula is A ) Y=650B + 50B (r) B) Y = 650B +40B (r) C) Y = 500B-60B (r) D) Y = 500B + 50B (r) D) 50. ၁ The formula for the IS curve can be derived from the formula Y = [Co+ MPC(Y-T)]+1+G. When the IS curve is derived, T and G are assumed constant and Y varies based on the interest rate r. Assuming that Co=50B, MPC = .80, T=2008, 1= 120B-108(r), and G-2508, the derived IS curve is c) D) 51. A) Y=1,300B-SOB(r) Y=1,400B+40B(r) Y = 1,300B +50B(r) Y=1,400B-50B(r) Using the IS formula you calculated in the problem above, what is the value of Y if r = 10 (10%)? 1,000B 900B 800B 700B Using the IS formula that you derived above, what is the value of Y if r = 12 (12%)? 52. A) 1,000B 900B 800B D) 53. 700B Assume that the money demand function is (M/P) =Y-50r, where r is the interest rate. The money supply M is 2,000B and the price level P is 4. Use this information to derive the LM curve function/formula. The LM function/formula is Y=650B +50B(r) A) B) Y = 650B + 408(r) c) Y=5008-608(r) D) Y = 5008 +508(r)
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