Question

4) The aggregate demand for home input can be written as a function of: I. Real...

4) The aggregate demand for home input can be written as a function of:
I. Real exchange rate.
II. Government spending.
III. Disposable income.
A) I only
B) III only
C) I and III
D) II and III
E) I, II, and III

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The Correct answer is I, II, and III

The aggregate demand for Home credit can be represented by the Real exchange rate, government spending and disposable income, These are the reasons that push and pull the demand of the home input. If the disposable income, Government spending is high and real exchange rate is favourable then the demand will be higher thus pushing demand for home credit and vice-versa. Thus, these can be written as the function of all of the above.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
​For a given aggregate supply curve, an increase in aggregate demand will: a. ​increase real GDP....
​For a given aggregate supply curve, an increase in aggregate demand will: a. ​increase real GDP. b. ​decrease real GDP. c. ​increase the real exchange rate. d. ​decrease the real interest rate. e. ​decrease the price level. ​Given an aggregate supply curve, a decrease in aggregate demand will: a. ​increase the real interest rate. b. ​increase real GDP. c. ​decrease real GDP. d. ​increase the price level. e. ​decrease the real exchange rate.
5) The economy has an aggregate production function fN=15N-12N2 , where N is labor input. Labor...
5) The economy has an aggregate production function fN=15N-12N2 , where N is labor input. Labor supply is given by NsWP=-5+3WP , where W is the money wage and P is the price level. Desired consumption depends on real income, Y, and can be written as CdY=10+0.7Y . Given real interest rate, r, the desired investment is Idr=30-200r . The real money demand is characterized by LY,r=10+Y-200r . Government spending, G, and nominal money stock, M, is given as G=0...
Suppose real output is initially at its full employment level. Using Aggregate Demand (AD)—Aggregate Supply (AS)...
Suppose real output is initially at its full employment level. Using Aggregate Demand (AD)—Aggregate Supply (AS) framework, discuss the short-run and long-run effects of a decrease in government expenditure on the price level, real output, nominal wage rate and real wage rate under the following three alternative assumptions: i) nominal wages are fully flexible, ii) nominal wages are relatively slow to adjust, and iii) nominal wages are completely rigid. Thanks.
A6. The marginal propensity to consume (I) is the increase in disposable income from a $1...
A6. The marginal propensity to consume (I) is the increase in disposable income from a $1 increase in consumer spending. (II) is the increase in consumer spending from a $1 increase in disposable income. (III) is usually a number between zero and one, but occasionally is a number greater than one. (IV) can be written as the change in consumer spending divided by the change in disposable income. (A) Statements I, III, and IV are all correct. (B) Statements II,...
Suppose there is a reduction in aggregate real money demand, that is, a negative shift in...
Suppose there is a reduction in aggregate real money demand, that is, a negative shift in the aggregate real money demand function. Trace the short-run and long-run effects on the exchange rate, interest rate, and price level. Explain.
Indicate whether each of the following factors will affect aggregate demand (AD) or aggregate supply (AS)...
Indicate whether each of the following factors will affect aggregate demand (AD) or aggregate supply (AS) and whether the effect would be an increase or a decrease. Then indicate what will happen to the price level and the level of real GDP and what type of equilibrium will result assuming that the economy is initially in long-run equilibrium. a) A decrease in the nominal wage rate. It will affect Aggregate Supply and will result in an increase in total supply....
1. The aggregate demand would shift to the right if: a. the money supply increases. b....
1. The aggregate demand would shift to the right if: a. the money supply increases. b. the Cambridge “k” increases. c. an increase in government spending is 100% offset by a decrease in consumer spending. d. foreign sector spending falls. e. All of the above. 2. The short run aggregate supply is viewed as upward sloping: a. showing that higher prices will lead to higher production. b. because it takes a while for wages to rise when prices rise. c....
Honey land analysis its aggregate consumer spending and aggregate disposable income and finds the following data....
Honey land analysis its aggregate consumer spending and aggregate disposable income and finds the following data. All numbers in the table are dollars. YD C $0 $100 100 180 200 260 300 340 500 500 Assume Honey land is a closed economy with no government spending, no taxes, and no transfers, Furthermore, assume the aggregate price level and interest rate are fixed in Honey land. a. What does autonomous consumer spending equal in this economy? b. What is the value...
True or False 1.Government spending can raise Aggregate Demand and real GDP in the Keynesian model....
True or False 1.Government spending can raise Aggregate Demand and real GDP in the Keynesian model. 2.Keynesians believe that monetary policy is very powerful at moving real GDP. 3.The Keynesians felt that the Great Depression was caused by inadequate demand partly coming from the stock market crash and partly from a lack of income growth for most people. 4.Contractionary gaps are more common than expansionary ones in the Keynesian model.
True or False 1.Government spending can raise Aggregate Demand and real GDP in the Keynesian model....
True or False 1.Government spending can raise Aggregate Demand and real GDP in the Keynesian model. 2.Keynesians believe that monetary policy is very powerful at moving real GDP. 3/The Keynesians felt that the Great Depression was caused by inadequate demand partly coming from the stock market crash and partly from a lack of income growth for most people. 4.Contractionary gaps are more common than expansionary ones in the Keynesian model.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT