Consider an economy described by the following. C- = 3.25 trillion
I- = 1.3 trillion
G- = 3.5 trillion
T- = 3.0 trillion
NX- = -1.0 trillion
f- = 1%
mpc = 0.75
d = 0.3 (trillion per 1% change)
x= 0.1 (trillion per 1% change)
λ = 1
r- = 1%
a. Derive expressions for the MP curve and AD curve.
b. Assume that pi = 1%. What is the real interest rate, equilibrium rate of output, consumption, planned investment, and net exports?
c. Suppose the Fed increases r- to r- = 2%. Calculate what happens to the real interest rate, equilibrium level of output, consumption, planned investment and net exports.
d. Considering that output, consumption, planned investment, and net exports all decreased in part (c), why might the Fed chose to increase r-?

Companies in the u.s. car rental market vary greatly in terms of the size of the fleet, the number of locations, and annual revenue. in 2011 hertz had 320,000 cars in service and annual revenue of approximately $4.2 billion. the following data show the number of cars in service (1000s) and the annual revenue ($ millions) for six smaller car rental companies (auto rental news website, august 7, 2012). excel file: data14-09.xls if required, enter negative values as negative numbers. a. select a scatter diagram with the number of cars in service as the independent variable. b. what does the scatter diagram developed in part (a) indicate about the relationship between the two variables? c. use the least squares method to develop the estimated regression equation (to 3 decimals). ŷ = + x d. for every additional car placed in service, estimate how much annual revenue will change. by $ e. fox rent a car has 11,000 cars in service. use the estimated regression equation developed in part (c) to predict annual revenue for fox rent a car. round your answer to nearest whole value. $ million hide feedback partially correct

Abus pass costs $5 per week. which of the following equations shows the total cost in dollars, t, of the bus pass for a certain number of weeks, w? t = 5w w = 5t t = 5 + w w = 5 + t

If big macs were a durable good that could be costlessly transported between countries, which of the following would present an arbitrage opportunity? check all that apply. exporting big macs from argentina to the united states. exporting big macs from the united kingdom to poland. exporting big macs from switzerland to china