Let's go back to the fall of 2008 when we were at the height of the financial crisis. Pretend you are steering the cruise ship and your goal is to keep interest rates steady in the money market. For simplicity, we hold the price level fixed at 1 and assume that inflationary expectations are fixed at 2%. Initial Conditions before the fall of 2008.mm = money multiplier = 1.6 MB = monetary base = 1000 Money Demand Md = PX [ao + .5 (Y)-200 (i)] Md = 1 X [ 200+.5 (3600)- 200 (0)] Solve for the money market clearing rate of interest. Now draw a money market diagram labeling this initial equilibrium in the money market.

Based on what you learned about time management which of these statements are true

What talent or skill do u wish too develop for yourself

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.