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md = (1/4)Y - 10i and ms = 400.

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md = (1/4)Y - 10i and ms = 400.

•Assume the money sector can be described by the following two equations:md = (1/4)Y - 10i and ms = 400.In the expenditure sector only investment spending (I) is affected by the interest rate (i),and the equation of the IS-curve is:Y = 2,000 - 40i.•a.Assume the size of the expenditure multiplier is a = 2.What is the effect of an increase in government purchases by DG = 200 on income and the interest rate?•b.Can you determine how much investment is crowded out as a result of this increase in government purchases?•c.If the money demand equation were changed to md = (1/4)Y,how would your answers in a.and b.change?
md = (1/4)Y - 10i and ms = 400.
政府支出增加前的均衡:Y=2000-40i ,400=Y/4-10i Y=1800 i=5
a.政府支出增加200,乘数为2,所以单纯的乘数效应是收入增加200*2=400
新的均衡是Y=2400-40i ,400=Y/4-10i Y=2000 i=10
收入效应增加2000-1800=200,利率效应提高=10-5=5
b.挤出效应是400-200=200,即由于利率的提高,投资减少,挤出收入200,没有达到400
c.如果md=Y/4,意味着财政支出引致的收入增加只会增加货币需求和供给,不会改变利率,投资不会减少,这样挤出效应为0,收入效应增加400,利率不变.
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