Department of Economics
Intermediate Macro
Fall 2006 Problem Set #3 Alexander
For each of the following cases, explain the effect of the policy change on Y, i, L, C, I, NX, and e. Indicate whether the policy will cause an increase (+), a decrease (-), or no change (0) in those variables.
I am looking for a description of the effect of the policy, as well as 6 diagrams (IS/LM/BP, money market, consumption, investment demand, Net Exports, and the foreign exchange market) for each of the cases below.
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Fixed, Mobile, decrease in t |
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Fixed, Mobile, decrease in M |
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Flexible, Mobile, decrease in TR |
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Flexible, Mobile, decrease in M |
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Fixed, Immobile, decrease in G |
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Fixed Immobile, decrease in M |
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Flexible, Immobile, decrease in t
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Flexible, Immobile, decrease in M |
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