Solutions to Blanchard End of Chap

Solutions to Blanchard End of Chap - ANSWERS TO...

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ANSWERS TO END-OF-CHAPTER PROBLEMS Disclaimer: These answers are provided by Pearson/ Prentice Hall as the answers for the end-of-chapter problems in Blanchard’s “Macroeconomics” (4th edition). The answers are not checked for correctness neither by the instructor of your class nor by any other UCSD instructor. Therefore the answers provided as the homework solutions might substantially differentiate from the answers below for those problems which were taken from the textbook. Additionally, the correctness of the answers below is not guaranteed. Nevertheless the answers are certainly a helpful device for checking the solutions one has worked out of her/his own. CHAPTER 4 Quick Check 1. a. False. b. False. c. True. d. False. e. False. f. True. 2. a. i=0.05: Money demand = $18,000 i=0.10: Money demand = $15,000 b. Money demand decreases when the interest rate increases because bonds, which pay interest, become more attractive. For the same reason, bond demand increases. c.
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Solutions to Blanchard End of Chap - ANSWERS TO...

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