Consider an economy described by the following. C- = 3.25 trillion
I- = 1.3 trillion
G- = 3.5 trillion
T- = 3.0 trillion
NX- = -1.0 trillion
f- = 1%
mpc = 0.75
d = 0.3 (trillion per 1% change)
x= 0.1 (trillion per 1% change)
λ = 1
r- = 1%
a. Derive expressions for the MP curve and AD curve.
b. Assume that pi = 1%. What is the real interest rate, equilibrium rate of output, consumption, planned investment, and net exports?
c. Suppose the Fed increases r- to r- = 2%. Calculate what happens to the real interest rate, equilibrium level of output, consumption, planned investment and net exports.
d. Considering that output, consumption, planned investment, and net exports all decreased in part (c), why might the Fed chose to increase r-?

Afreelance​ singer-songwriter is planning the restoration of a recently purchased civil​ war-era farmhouse. while he professes an enjoyment​ of, and talent in the construction​ trades, the theory of comparative advantage implies that a. the value of what he imports​ (in this​ case, professional contractor​ services) must equal the value of what he exports​ (songs). b. he should concentrate on the restoration work since his​ out-of-pocket costs will be much lower than if he hires professionals. c. ​self-sufficiency is​ advantageous, hence he should split his time between music and construction. d. the income lost while away from music will likely exceed the savings realized by doing the work​ himself, thus, he should hire professionals to do the restoration work. e. he ought to do as much of the work himself as possible since imports​ (in this​ case, professional contractor​ services) should always be restricted to those things that cannot be done internall

The green fiddle has declared a $5 per share dividend. suppose capital gains are not taxed, but dividends are taxed at 15 percent. new irs regulations require that taxes be withheld at the time the dividend is paid. green fiddle stock sells for $71.50 per share, and the stock is about to go ex-dividend. what will the ex-dividend price be?

Mai and chuck have been divorced since 2012. they have three boys, ages 6, 8, and 10. all of the boys live with mai and she receives child support from chuck. mai and chuck both work and the boys need child care before and after school. te boys attend the fun house day care center and mai paid them $2,000 and chuck paid them $3,000. mai's agi is $18,000 and chuck's is $29,000. mai will claim two of the boys as dependents. she signed form 8332 which allows chuck to claim one of the boys. who can take the child and dependent care credit?