Assume that initially the IS curve is given by: IS1: Y = 12-1.5T-30i+2G and that the price level P is 1 and the LM curve is given by LM1: M = Y(1-i) The home central bank uses the interest rate as its policy instrument. Initially, the home interest rate equals the foreign interest rate of 10% or 0.1. Taxes and government spending both equal 2. Call this case 1. a. According to the IS1 curve, what is the level of output Y? Assume this is the desired full employment level of output.
b. According to the LM1 curve, at this level of output, what is the level of home money supply?
c. Plot the curves for case 1 on a chart, label axes and equilibrium values. d. Assume that forex market equilibrium is given by i=([1/E]-1)+0.1 where the two foreign return terms on the right are expected depreciation and the foreign interest rate. The expected future exchange rate is 1. What is today’s spot exchange rate?

Question 1 which of the following tasks use your roommate as a resource? choose all answers which apply. take order wash the mixer’s bowl and mix the dough spoon cookies onto the tray unload the cookies from the oven pack the cookies 1 points question 2 which of the following tasks use the tray(s) as a resource? choose all answers which apply. take order wash the mixer’s bowl and mix the dough bake the cookies cool the cookies accept payment 1 points question 3 determine the task time for the following tasks. fill integer numbers into the blank (e.g., 5 rather than 5.0) wash and mixing the dough: minute(s)/order spoon cookies onto the tray: minute(s)/order set up timer: minute(s)/order bake: minute(s)/order cool the cookies: minute(s)/order pack the cookies: minute(s)/order accept payment: minute(s)/order 2 points question 4 q4: determine the cycle time for the following resources. fill integer numbers into the blank (e.g., 5 rather than 5.0) kristen (you): minute(s) roommate: minute(s) oven: minute(s) 2 points question 5 what is the capacity rate (in orders/hour) of the roommate? 1 points question 6 what is the capacity rate (in orders/hour) of the whole process? 2 points question 7 how long (in minutes) it takes to process the first order?