A simple economy is characterised by the following equations: Ct = 200 + 0.5Y, It 3(Y - Y-1) and Yo Solve the difference equation. Hence, describe the time path. Will the system stabilize?

Since 1999, the number of small state-owned enterprises (SOEs) in China has

A) decreased, but the large SOEs continue to hold a large proportion of industrialized assets. B) increased, but large SOEs has decreased. C) decreased along with the large SOEs. D) remained unchanged.

What is the real (adjusted for inflation) present value of $104.25 that you could receive one year from now, given that the rate of interest is 4.25 percent and the anticipated rate of inflation is 1 percent?

A) $99.05 B) $100.97 C) $107.64 D) $100.00

Suppose that you are a bank manager, and the Federal Reserve raises the required reserve ratio from 10% to 12%. What actions would you need to take?

A. You would have to reduce lines to make up for the necessary increase in reserves B. You would need to make loans to match the new reserve requirement C. You would have to charge less for your loans because rates are now at 12%

Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; higher; higher B. recessionary; lower; lower C. expansionary; higher; potential D. recessionary; higher; potential