Answered

Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Explore a wealth of knowledge from professionals across different disciplines on our comprehensive platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Suppose the following equations describe the relationship between the long-run shares of spending in GDP and the interest rate (R), measured in decimal fractions (that is, R = 0.05 means that the interest rate is 5 percent).

Equations: C/Y* = 0.7 – 0.2(R - .05) and I/Y* = 0.2 – 0.8(R - .05)

X/Y* = .0 – 0.95(R - .05) and G/Y* = .2

Use algebra to determine the values of the interest rate and the long-run shares of spending in GDP.

R =

C percentage =
%

I percentage =
%

X percentage =
%

G percentage =
%

Sagot :

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.