65 532
Assignments Done
99,2%
Successfully Done
In October 2018

Answer to Question #55370 in Macroeconomics for Idowu

Question #55370
Given the following information about a closed oil-rich economy which does not impose any tax on its citizens to finance its expenditure, you are required to derive mathematically and explain using graphs the impact of a change in each of the key exogenous variables on the endogenous variables.
Y = C + I + G
C = C(Y), I = I(r), G = Go, Md = L(Y,r)
Expert's answer
If a closed oil-rich economy does not impose any tax on its citizens to finance its expenditure, Y = C + I + G, C = C(Y), I = I(r), G = Go, Md = L(Y,r), then the increase in exogenous variables as C, I, G and L will cause the endogenous variable Y and Md to increase. Increase in such variable as r will cause Md to decrease.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions