Assignment 6 Answers adj

Assignment 6 - .Herearethesolutions 1.:(15points 1a.GDP=C I G NX=90 20 15(812)=121 1b.NDP=GDPDepreciation=(1215)=$116 2.(15points 2a.Answe

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I added the bonus 10 points.  Here are the solutions: 1. Use the following to answer questions 1-2:  All figures are in billions of dollars: (15 points) 1a. GDP = C + I + G + NX =  90 + 20 + 15 + (8 – 12)  = 121 1b. NDP = GDP – Depreciation = (121 – 5) = $116.     2. Use the IS curve below for Questions 3 and 4:  (15 points) 2a.  Answer: Point 2 2B. .  Answer: Point 2        3. Use the LM curve below for Questions 5and 6:  (15 points)  3a.  Answer: Point 2 3b.  Answer: Point 4 4. Using demand and supply analysis to assist you, what are the effects on the exchange rate between  the British pound and the Japanese yen from: (20 points)         a.  an  decrease  in Japanese interest rates:  The yen depreciates, and the pound appreciates b.  an i decrease  in the price of British goods:  The yen depreciates, and the pound appreciates. c.  an 
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This note was uploaded on 01/20/2010 for the course ECO 550 taught by Professor Gooding during the Fall '09 term at Strayer.

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Assignment 6 - .Herearethesolutions 1.:(15points 1a.GDP=C I G NX=90 20 15(812)=121 1b.NDP=GDPDepreciation=(1215)=$116 2.(15points 2a.Answe

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