Greatly appreciate the minds and time of those who contribut

Custom Essays Economics Greatly appreciate the minds and time of those who contribut

Economics

Greatly appreciate the minds and time of those who contribut

Greatly appreciate the minds and time of those who contribute. These questions are a bit beyond my u… Show more Greatly appreciate the minds and time of those who contribute. These questions are a bit beyond my understanding and I’ve used all resources I had. Solution and steps to get there needed. (1) Q. What equation is related to flows into and out of financial intermediaries (NOT firms, just financial intermediaries)? Explain which components are flows in and which are flows out. (1) A. Here I got S+(T-G)=I , through a chart. I feel this is accurate, but really am not sure. The following questions will be based on this. I do not understand them at all. ————————————–… (2) Q. Consider an economy in which I = 800, S = 700, T = 500, G = 600, and with M = X. Using the equation you found in (1) , show that the financial market is not in equilibrium. (3) Q. What should happen to the interest rate to bring the financial market into equilibrium? Explain your answer. Thanks in advance • Show less

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