The Goods Market: Suppose consumption is a linear function of disposable income: C(Y − T) = a + b(Y − T), where a > 0 and 0 < b < 1. The parameter b is the marginal propensity to consume. The parameter a is a constant, often called autonomous consumption. Suppose also that investment is a linear function of the interest rate: I(r) = c − dr, where c > 0 and d > 0. The parameter d measures the sensitivity of investment to the interest rate. The parameter c is a constant, often called autonomous investment. a. Solve for Y as a function of r, the exogenous variables G and T, and the model’s parameters a, b, c, and d.

Last year, western corporation had sales of $5 million, cost of goods sold of $3 million, operating expenses of $175,000 and depreciation of $125,000. the firm received $40,000 in dividend income and paid $200,000 in interest on loans. also, western sold stock during the year, receiving a $40,000 gain on stock owned 6 years, but losing $60,000 on stock owned 4 years. what is the firm's tax liability?

You are thinking of making your mansion more energy efficient by replacing some of the light bulbs with compact fluorescent bulbs, and insulating part or all of your exterior walls. each compact fluorescent light bulb costs $4 and saves you an average of $2 per year in energy costs, and each square foot of wall insulation costs $1 and saves you an average of $0.20 per year in energy costs.† your mansion has 150 light fittings and 3000 sq ft of uninsulated exterior wall. to impress your friends, you would like to spend as much as possible, but save no more than $750 per year in energy costs (you are proud of your large utility bills). how many compact fluorescent light bulbs and how many square feet of insulation should you purchase? how much will you save in energy costs per year? (if an answer does not exist, enter dne.)

When making broccoli cream soup, the broccoli and aromatics should be a. burned. b. simmered. c. puréed. d. sweated.