School

[Littletexas]

Ok Buff..............Miss retread

  that is what they called me when I went back.  You will love, love, love it.  Kids seem to gravitate to the older people too ...for some reason.  I had a blast.  That one hour commute sounds like a killer though.  That was the main reason I stopped going.  I was going to a community college near me because the one in my district was one hour away.  Making my classes...out of district...just to costly to justfy.  Especially at my age.  Like Tara.....if only we could see into the future and our hindsight was foresight.

  PSSSS:  When I had finished growing up and school was a done deal.........I wanted to be a teacher too.

  But I'm not through growing up yet.........so..........

[Taramoon8]

LT!

Cheers to not growing up but still having many years of knowledge!

If you go back to school LT you let me know...I think that would be awesome!

[Taramoon8]

LT!

Cheers to not growing up but still having many years of knowledge!

If you go back to school LT you let me know...I think that would be awesome!

[Survivor Buff]

OK, so I need some help.  Im taking a macroeconomics class, which is ungodly stupid - he refuses to teach from a book at all, so kinda hard to follow.  I have an assignment, due by this sunday, 4/26 - if anyone understands this crap would you please help me out? '>

Feel free to use a spreadsheet, if necessary, to come up with your
answer.

Assume the following data for a “open” (i.e. with foreign trade) economy: using keynesian

G=150 (Government Spending)
T=50+.2Y (Lump-Sum and Income Taxes)
I=100-500*(i) (Planned Investment, as a function of the interest rate)
C=10 + .8Yd (Consumption function; Yd = disposable income)
Yd = Y - T (Disposable income, defined)
X=25 (Exports)
IM=10 (Imports)
Ms = 1000 (Money supply)
Md = 2000 +(.5)*Yd - 10000*(i) (Money demand, as a function of income and the interest rate)
RRR=.1 (Reserve requirement ratio; only relevant for #5)

1) Calculate equilibrium income (show your work)
2) Calculate the equilibrium interest rate
3) What is the government spending multiplier?
4) For every dollar of government spending, how much investment is “crowded out?”
Explain the way this works.
5) Calculate the change in the following variables, if the central bank purchases a $25
bond from the public:
i) money supply
ii) interest rate
iii) investment
iv) GDP


I will love you forever! '>  :'>

[Survivor Buff]

OK, so I need some help.  Im taking a macroeconomics class, which is ungodly stupid - he refuses to teach from a book at all, so kinda hard to follow.  I have an assignment, due by this sunday, 4/26 - if anyone understands this crap would you please help me out? '>

Feel free to use a spreadsheet, if necessary, to come up with your
answer.

Assume the following data for a “open” (i.e. with foreign trade) economy: using keynesian

G=150 (Government Spending)
T=50+.2Y (Lump-Sum and Income Taxes)
I=100-500*(i) (Planned Investment, as a function of the interest rate)
C=10 + .8Yd (Consumption function; Yd = disposable income)
Yd = Y - T (Disposable income, defined)
X=25 (Exports)
IM=10 (Imports)
Ms = 1000 (Money supply)
Md = 2000 +(.5)*Yd - 10000*(i) (Money demand, as a function of income and the interest rate)
RRR=.1 (Reserve requirement ratio; only relevant for #5)

1) Calculate equilibrium income (show your work)
2) Calculate the equilibrium interest rate
3) What is the government spending multiplier?
4) For every dollar of government spending, how much investment is “crowded out?”
Explain the way this works.
5) Calculate the change in the following variables, if the central bank purchases a $25
bond from the public:
i) money supply
ii) interest rate
iii) investment
iv) GDP


I will love you forever! '>  :'>

[Cestriano]

Well, good luck, Buffy! I'm actually taking a second shot at College/Uni in the fall too, lol. Though...that homework thing you have boggles my mind in SO many ways. Math was FAR from my best subject in high school. I always got 80s in Physics though...go figure.

[Cestriano]

Well, good luck, Buffy! I'm actually taking a second shot at College/Uni in the fall too, lol. Though...that homework thing you have boggles my mind in SO many ways. Math was FAR from my best subject in high school. I always got 80s in Physics though...go figure.

[Jasen777]

(Survivor Buff @ Apr. 22 2009,14:23)

QUOTE

I'm pretty good with math, but it's been a while since I had economics.  

I don't think there's enough information there.  Do you have a formula for something like equilibrium income or equilibrium interest rate?  Perhaps it'll be in your book.  

The government sending multiplier should be a simple formula.  If I remember right it's a function of people's saving rates or something like that.

The only formula for investment you have is as a function of the interest rate (not government spending and nothing to show the effect on the interest rate as a result of government spending), and we don't know the interest rate anyways.

Basically, I think you are going to need some more equations from your book, or at least some definitions.

[Jasen777]

(Survivor Buff @ Apr. 22 2009,14:23)

QUOTE

I'm pretty good with math, but it's been a while since I had economics.  

I don't think there's enough information there.  Do you have a formula for something like equilibrium income or equilibrium interest rate?  Perhaps it'll be in your book.  

The government sending multiplier should be a simple formula.  If I remember right it's a function of people's saving rates or something like that.

The only formula for investment you have is as a function of the interest rate (not government spending and nothing to show the effect on the interest rate as a result of government spending), and we don't know the interest rate anyways.

Basically, I think you are going to need some more equations from your book, or at least some definitions.

[hobbes08]

Hey Buff, I would love to help but my eyes kinda crossed when I saw that.  '>

I'll poke around and ask some of my friends if they know how to do it. If they do I'll post what they say ASAP But, on my own I'm pretty hopeless with it.

Best of luck with it!

[hobbes08]

Hey Buff, I would love to help but my eyes kinda crossed when I saw that.  '>

I'll poke around and ask some of my friends if they know how to do it. If they do I'll post what they say ASAP But, on my own I'm pretty hopeless with it.

Best of luck with it!