Order Your Paper From the most reliable Essay writing Service. 

.

 



Question: The National debt was 9800. What will be the new level ofnational debt?The government decides t...

The National debt was 9800. What will be the new level of
national debt?

The government decides to change taxes to combat the situation.
What will the new level of taxes be?

What will the new level of government purchases be?

Monetary policy: OMO and RR changes.

Find the government budget deficit/surplus before the policy
change.

Show transcribed image text Money Demand -9500-500i Initial Money Supply S100 Reserve Ratio: 5% Government Taxes $5000 All numbers are in millions of dollars Loanable Funds Demand 1300 -100i GDP gap 100 MPC 0.6 Government Spending $6500

Money Demand -9500-500i Initial Money Supply S100 Reserve Ratio: 5% Government Taxes $5000 All numbers are in millions of dollars Loanable Funds Demand 1300 -100i GDP gap 100 MPC 0.6 Government Spending $6500