Universidad National and International Financial System Politécnica ‘Metropolitana de Hidalgo Laborator 1. Inthe framework of the analysis of the Mundell-Fleming model, consider a small and open economy —immersed in a system of fixed exchange rate and perfect capital mobility— with the public sector represented by the following system of equations: YSAD=C+I+G+X-M Q@ C = 9,000 + 0.9¥d @ Yd=Y-T+TR @) T=033Y ® TR = 42,900 6) 1 = 88,600 ~500(6.99); Fr © G = 93,200 a X = (19.3)(43,700) @) M =04¥ ~ (21,100)(19.3) ” L = 32Y¥ —54(6.99) ; r qo) i= e 4) Proceed to determine the equilibrium levels of each of the macroeconomic variables of the economy; ie., ofall the variables of the model, Likewise, proceed to graph the IS-LM-BPS curves, such that they are consistent with your algebraic results, 5) Considering the macroeconomic equilibrium determined in part (a) as the initial situation, suppose that the Government decides to implement an expansive fiscal poli consequently, i modifies its Expendis AG = 7,800. Proceed to determine the new macroeconomic equilibrium (that of all the macroeconomic variables of the econon ic system). Is the fiscal policy effective or ineffective? What can be concluded about monetary policy? ©) Considering the macroeconomic equilibrium determined in part (a) as the initial situation, suppose that the central monetary authority decides to implement a monetary policy, thus modifying the money supply by 3000, i.: A(™*/p) = 5,000. Proceed to determine the new macroeconomic equilibrium, To what conclusion above regarding the implementation of this instrument by the Central Bank?2. Inthe framework of the analysis of the Mundell-Fleming model, consider a small and open economy —immersed in a system of fixed exchange rate and perfect capital mobility— with the publie sector represented by the following system of equations: YSAD=C+I+G+X—-M a C= 1,500 + 0.8¥a @ Yd =Y-T+TR @ T=01Y 4) TR = 400 © 1 = 2,000 120(3); r © c=3,000 a X = (20)(8,000) @) M = 04Y — (1,000)(20) o L = 20¥ - 100(3) ; r=r ao) (7p) = ay 4) Proceed to determine the equilibrium levels of each of the macroeconomic variables of the economy; i-e., ofall the variables of the model, Likewise, proceed to graph the IS-LM-BPS curves, such that they are consistent with your algebraic results, 4) Considering the macroeconomic equilibrium determined in part (a) as the initial situation, suppose that the Government decides to implement an expansive fiscal AG = 1,800. Proceed to determine the new macroeconomic equilibrium (that of all the macroeconomic policy, consequently, it modifies its Expenditure in: variables of the economic system). Is the fiscal policy effective or ineffective? What can be concluded about monetary policy? © Considering the macroeconomic equilibrium determined in part (a) as the initial situation, suppose that the central monetary authority decides to implement a S monetary policy, thus modifying the money supply by 6700. i. 4("/p) = 6,700 Proceed to determine the new macroeconomic equilibrium, To what conclusion above regarding the implementation of this instrument by the Central Bank?3. Inthe framework of the analysis of the Mundell-Fleming model, consider a small and open economy —immersed in a system of fixed exchange rate and perfect capital mobility— with the publie sector represented by the following system of equations: YSAD=C+I+G+X—M wo C= 2,600 + 0.8¥d @ Yd =¥-T+TR 8) T=0.3Y @ TR = 150 © 1 = 2,630 816.31); r=r? © G=1,700 a” X = (23)(36,700) @ M = 03Y — (9,400)(23) ~ 1L=65Y — 476631) ; r= (a0) (p= an @) Proceed to determine the equilibrium levels of each of the macroeconomic variables of the economy; i-e., ofall the variables of the model. Likewise, proceed to graph the IS-LM-BPS curves, such that they are consistent with your algebraic results. 5) Considering the macroeconomic equilibrium determined in part (a) as the initial situation, suppose that the Goverment decides to implement an expansive fiscal policy, consequently, it modifies its Expenditure in: AG = 3,090. Proceed to determine the new macroeconomic equilibrium (that of all the macroeconomic variables of the economic system). Is the fiscal policy effective or ineffective? What can be concluded about monetary policy? ©) Considering the macroeconomic equilibrium determined in part (a) as the initial situation, suppose that the central monetary authority decides to implement a monetary policy, thus modifying the money supply by 9500, /..: 4(M'/p) = 9,500 Proceed to determine the new macroeconomic equilibrium, To what conclusion above regarding the implementation of this instrument by the Central Bank?4. Inthe framework of the analysis of the Mundell-Fleming model, consider a small and open economy —immersed in a system of fixed exchange rate and perfect capital mobility— with the publie sector represented by the following system of equations: SAD=C+I+G4+X—-M a 379,100 + 0.85Yd @ Yd=¥-T+TR @) T= 0.03Y “ TR = 140,300 © 1 = 865,400 -976(7.01); ) G = 729,400 a” X = (27)(410,700) @ M = 0.7Y — (639,500)(27) o L = 82¥ - 101(7.01) ; r (a0) (7p) =H an @) Proceed to determine the equilibrium levels of each of the macroeconomic variables of the economy; i-e., ofall the variables of the model. Likewise, proceed to graph the IS-LM-BPS curves, such that they are consistent with your algebraic results. 5) Considering the macroeconomic equilibrium determined in part (a) as the initial situation, suppose that the Government decides to implement an expansive fiscal 188,400. Proceed to policy, consequently, it modifies its Expenditure in: AG determine the new macroeconomic equilibrium (that of all the macroeconomic variables of the economic system). Is the fiscal policy effective or ineffective? What can be concluded about monetary policy? ©) Considering the macroeconomic equilibrium determined in part (a) as the initial situation, suppose that the central monetary authority decides to implement a monetary policy, thus modifying the money supply by 9500, i.e. (M7) 3,333, Proceed to determine the new macroeconomic equilibrium, To what conclusion above regarding the implementation of this instrument by the Central Bank?5. In the framework of the analysis of the Mundell-Fleming model, consider a small and open economy —immersed in a system of fixed exchange rate and perfect capital mobility— with the publie sector represented by the following system of equations; SAD =C+I+G4+X—M a C= 825,880 + 0.399¥a @) Yd =Y-T+TR @) T=0.09Y “ TR = 320,900 © 1 = 755,100 — 888(8.03) ; r ) G = 655,330 a” X = (21.01)(522,550) @) M =0.33Y ~ (87,720)(21.01) o L = 93Y — 103(8.03) ; r (10) (7p) =H an 4) Proceed to determine the equilibrium levels of each of the macroeconomic variables of the economy; i-e., ofall the variables of the model, Likewise, proceed to graph the IS-LM-BPS curves, such that they are consistent with your algebraic results, 5) Considering the macroeconomic equilibrium determined in part (a) as the initial situation, suppose that the Government decides to implement an expansive fiscal policy, consequently, it modifies its Expenditure in: AG = 262,470. Proceed to determine the new macroeconomic equilibrium (that of all the macroeconomic variables of the economic system). Is the fiscal policy effective or ineffective? What can be concluded about monetary policy? ©) Considering the macroeconomic equilibrium determined in part (a) as the initial situation, suppose that the central monetary authority decides to implement a monetary policy, thus modifying the money supply by 9500, ic: 8 (M'/p) = 4.444 Proceed to determine the new macroeconomic equilibrium, To what conclusion above regarding the implementation of this instrument by the Central Bank?Homnandez Ouch Emmeli Estephangc. bye ee Nestea Finoncal Oystem, \chortory it, Ye Ap-C4TaGsy-M \ “V,000 + Q.Qy4 (2) Yd=Y-T 479, (3) [2 0.33) (4) R= 42,q006 (s) a. = 88,600 — S00 (6.aa\ » r =¢* (c) Gz 93, 200 | (3) X= [Ia,a) (43, 900) (a) M=: 0,4Y - (2\, 100) |\.3) (a\ b= 32Y -s4[¢.qq), ¢- (\0) 5 %) =| LN ! ? PM euicenicere cult eqor brio. ~>Y*2 4,000 + 6.9 (Y*~ 6.33 )"+ 42,00) 3 88,600 ~-500 (6.9) +43200 + (14.3) [43900)- To.4y - [21 100) [i,3)] | PY" 1020715 ¥ 6.4 [1 -.33)Y" + o.4 [42Q00)~ o.4y" + [2\\00) | 14.3) Scanned with CamScannerSy. I436835 +\0.9 (4 - 0,23)- ©, a] Y" a - loa | (4 - 0.33) - o.4\y* 2 = |43688S =) is lo.g | a | A i 33) - Q, ay] We \4+6555 yee 1 4 -Jo.4 (\-0133)- 0,4} ) = 1476855 +h . —— 1oO0 ‘oe [o -4 (\- 0.3% =| re 3a) = 4 2s 0d 1442 nJ a \12) ry os 1\OOO . a ) | a3 \. 1446885 oe Y = 188264\,1543 ca Scloshiohay lo) an (N) and solving ( MA) = 2 SAN - 34 (G40) (1a) Sobabboling (13) Vn | 14\ ancl salu ing 7 ms /s ) = 3d (18582 64 \ 1843) ~ 64 (G.qc1) . \? eo ("7z) = SU2B ASA . 4396S 14y (13) ‘There pore \ he I86264\, 154s A e*=G.4q 4% A (M7, sa ape senses Vhen : DT 0.33 [issreal 1643) o1% = GiB. $8 0428468! lic) a Scanned with CamScannerVeer Z Sines Bowel Estep hany & A \G@5264\,15S48 — 6\N33\. 880428481 / 42406 ee VA% = 1284164185 340025 l1+) IC™ = A000 + 0.9 [128 4164.89 40025) EC" = 64982, Clé060a3 lis) el pe 88606 -soo (6,4) i. 1" = BSi05S (ia) YM" 204 ligsaeal, 543) -(arloo) (14.2) ve M® = 33384¢,4617314q2 (20) —)AD”™ =1164952, 61606023 +8S105 + 43200 + [let.y) (43900) — 333826. 46173) 0. AQ = 188264). 18432873 AQ* = y* Si slclalan, (13) th (\o) orevil solu mg ‘ = a oy (185264, 1543) - 34 { c.44) SLX = $428 43a, 4I8sle4 (a\) Scanned with CamScanneri= tragic a ala beant ms Dernuwtle Smee Ewrneli bs teplianyes. A, Mistereeeenntae. equlibriom 4 Mos tl excharye euke syotem Scanned with CamScanner. \ nchez ve melv it . Cxoaroine sa policy, ne rand = ; Es gha u Scanned with CamScannerC ~ Hernandee Sane Loma: E seh Ve Wy Kaien ed ol’ cin independently expense pamela Policy Vror WNereasey IN DAO by mo dity tag the Money Sopely by Wve ol eell Mone dary aw tho «4 (mM oy ‘xed exchange al Vay roe has neycitiug ef Peps / because Whe equi \brium die cn indevedd Ste of ne ceil of Wye world , whieh Causes A MeSS\vEe Pugh of coprtea by Wnvesdon S | eewhing Ve de ves ldecrion Investors 7 lohvch In Jorn Caurés deve loerdvor _ Scanned with CamScannerNerrancdle: Sundez Emmols Eslecharger ‘ YEAQ=C4LIGLX-M (4) U=\/sco. + ©.8\d (2) Yd=Y -7 4470 (3) TG. (4) TA=40R [ 5) L= 2,00 - 120 (2), var (6) G= 3,000 Oe (>) X = (20) (g,c00) (8) M = O.4Y -(1,000) (20) (a) a a0: =. jag [3) yp rer (10) 5 “%) =) (11) a . N\acroeconomie equilile r\om) *2\500 1 6.8 (Y7-0.\y" 1400) } 2000 - 120 |3)+ 3000 4 [20\ (8000) ~fo.4 - (ooo \ | 20)\3 "2 \ecl4uo $0.8 (1-0.4)Y" 10.8 (400) - 0:4" 4 (\oo0) (20) -Y*s\e646o YJo-8 [4 - ot) - o4 | y* >Y"-fo.g (2 -or)- on] Y 219 cugg hh = ore {4 -eA)'« OW) \* -~\E E460 r= | atencea | Scanned with CamScannerHerake Sarde Emmet Estephange ne 42> =1,493882385 4 L4-[o.8 b-od\-o.4) J = (12 Ma “Az >| ISCANGO oN = siee (328 = Qtl44, 05882 : , \3 Ov ahs Lene ( (10\ ww (w\ and 50 ly ny wA = 20 -1\c0 (3) ‘ -("75) = [aaannes.\ = su2cat « 6s As) shee 9 Ws aq} 06588 2 : Pee ays \ (75) = S4I6\.P 65 > {* -~o6,\ ao) 1+ vel*® - Y66Iso0 \ ——— = 21420. 3992y (\c) — N x . iB = 466139 ~ 4661390 + 4oe 13 I i ¥ NAT 2 N9O%SS _ guaigs. 20ul (12) /2 TC" > 1500 ¥ 0.8 Senet oo C™* = = = IAG248, 245% (13) ~)[* = 2000 - 126 (3) vel = \G4G Cle} SM 20.4 [aee122\ - (1090) (201 ° x -~- \SA2H LOO oo M SS = QA 632.35 24 (20) )3 —) av* = Segre + 1L4Q4 23000 3 [20 ) [8000 ) _ 1824660 i Ta. OU eg aed with CamScanner“hO* = 4GG\SOO oo a = 234203 . 8225872. AS 2 = a ae ay es [Aeeisoo ) - oO (3) ek = 6 Seer = SNe be es (21) ) > Scanned with CamScanner2° Gragne Solohon Vernithe Sumheo Ewmneli Cstephanyor Ri Moseoeconomic equilibrium Dae excharge verte oy5 tem Scanned with CamScanner| Nernandec Sanchez Ex mmelt Ee an KS, Cxparowe erage, palicy, eh J Scanned with CamScannerC. Nernandec Oanhez Erne grime The iW alae gacher al an independently expense monedoury Policy oe \nereasey WN S000 by modity ing the Money Supply by \ne eee mone tary autho 14 in oO xed exchange oak Vea me hos negcr tug effecds because he equi briam Aoi ot cia oe oite o | She ee of MMe world , which CaAUeS aA MaSdlvE Pgh 08 copra by Investor 5, | eeiching M6 clevaluadion Wmvestors bolych 1" Jorn Caur>es deve loedtvorl re Scanned with CamScannerSee Ee pe oe ee Werte Snelez Erne Estee hange Ree \ T= ApeOsL4QeX-m (3) = 2,600 1 0.g\d (2) YA=N-T 4479 (2) T= 0.13 ( 4\ TR =180 (s) 1= 2,636 - 8\ [c.a\\ ; Fah [ c) G = \,2e0 (+) X = |23) (36,700) (8) M763 = (4,40) (23) La) | BS 4 aby ty (6.3)\) jun =e (\o)\ “7 =| (\\) Ay Moroz conofmnie eq ho 1omM. 4" = 2600 40.8 [Y¥ -o1SY" 4 190)4 2630-81 (6.31) + ROO + (23) (ac300\- Le- > Y" - (1400) (23) DY%=9 5591884 +08 (L-ous\Y% + OB (150) - Od 9% 4 fa4oo ) (23) 7 yy ~1064 2 86 84 + 0.8 [4 0,4) Org] Vx -7y*- [o.8 (1-0.13\)-0.3) Y* = 1066838 . Sq -y i = }o.8 (4 ~O\)3) = os} 4 V¥ = \0 66838 84, y=) —— 4+ —___} sce gag. ga {~fe.8 (4-0,14) -03} | - 206+, ~ Scanned with CamScanner4 —— Hlewsnder Sec Emmeli E sheoh canycr, she } 7 4 ~[o.g [4 -0,18)-0.3] ) = SSS 210658624189 9) 4 . (12 a = (46 \) 104 6822 84 ay ee =NGC 284.553 oO Sobshiubiny (10 \ bw (v0) anol solving " (13) NO 7 Syo4lad4s a /g\= 63 oe) uy [c.>)) e ere. -— \14898924. 35109 £13) There Lore ‘ . ; : YX = AGb2 24 .SSS nr. o#=6.3\ 72. A ve = 149 02524.3367 09 Then : "5 44 0) e) oe | ° x ool) = 229612,64(883419 Sor 1 ee! eB { (1c) S02 a ¥ z cM AY = 188 6921-40929 2 (17) “0 *2 2600 40.8 (1530224 .“10%1292) i "= 129209) .5 283749 “1, = 1x0 - $\ (G.3\) wea Se 21 88a roo = AWS EQ (iz) —) on Sere (auoc (23 ) SUN - AB U166 BG) (ia . ! \ Got =ald68C,¢5¢ ~ IAY)* = \932053,382987418 4 [AMBELX\ y iyog 4 (2 Z 3 ~ AS 66867 2 ee ee ea ar an Co A = 1766289 .5§2¢. AD* = \* x 53 34IGHYS _t 4a)"%=64 ea 1) (¢.3l) oo h” - W808 S24 , 3743904 (2\) Scanned with CamScanner4° fraghic & slalvews ; Dennuuilee Sembee Ewrneli bs tephanyer AK, Musrkeesannwe equilibrium i Dae excharge fue syotem enh Scanned with CamScanner, Ven wlez Sanchez Ermmelt Elcom b. Cxparowse rica pdlicy. : pe Scanned with CamScannerC | Hernandec Sanhee Emme Es teghewppa Vhe im Abined anon ol ain independently expense amedous Policy Le WNereasey IN SOOO by mo dit \ng the money Sop ely by \ne Fortran mone Jory autho «4 Tee ‘xed exchange rete Y€qv me hos neyertug efPecls , because he oqo brim dene inte read rele o MWe pre of Me word | ay ties Causes aA Masdslué Pgh of copra by \nuestor 8, | eewhing Lis ein lab tion \INUESTOTS 7 bobycy in Jorn CaureD develuaten te Scanned with CamScannerSe che We sande Sanchez Emmeli ESlechon wi Venbe03) 3 Gh xo (1) C= 324, 100 4 0.854 (2) Nd =\-T4T0, (3) T= 6.03% (4) TRA = \40 , 300 (s) 1 = 865,400 ~ Nb (2 ol\y per? [6 \ = 724 ,4oo | (7) X = (23) (410 , 200) (2) M = GAY ~ (639,500) (23) (a) = G2N — jo\ [2.01)° =e (\o) wa = ke a 1, Ucyroeconorme equvlb rom. = ae ZIQIOG +0,85 (4 -0.034" ‘ 140300) #791400 + [o »\ (4lores ) —< fo. yt = (63%S00\ (24) | yx = \305949e. 24 + Gar (4 —0.03)y4" 1 OBS (Musa) - 6.3 _ \ (¢ aqgoo) (23 y%* = BOW 1413.24 2 lo.83 [1 -c.03)-o.3\y» -yyr = Lo? [1 -a.0x)-o.a\y* = SIOUYIFIS,2Y, gi 9 >} - [o- 8s (4 -0.03) eri) 4 S* gamut ay 2k { f “ o . - a \ = 2000 _ ie 7A = \ Tees -onsl-end | 135 | = be p4UAWGS (S> a ea yy" = (2226, \ SOMES 2a oe Y" 4990666 -4) ns ee C1y\ Scanned with CamScannert Enmmel u - | Suloohtdtiny \ to) \n L\\ seni sduay He nomulez Sknke2 Esleh ny (“% \ =B82% - \o\ (3 .0\) (14) |A7/e \ 232 [Barr066o ,44\- Tot (9.01) 1. (My) «apeninause + sao (3) Therelare® ? M yr=annoceo.4y NR = 7.0\% \ [Ze )= 2951113450 F104 “Then » ¥ Tie CS (3493 0660.4)) os ISH BN B14 (1c) DNY¥ = guAIOECO.4 ~ OH 3BMABIN + 1HO,300. | ZN” = 338679840. 66 oe (17) - =3¥Mloo 1 0.85 [BSAC4o cL) ea - 291606164 ,56 (is) Yh Egts4oo - 996 (3-01) ool" -8138559.2-4 (1) TN” =0.3 [433 0660.43) - (634300) (23) oaM™ =3042467°32% Qo) pH’ 206626456 £92855B.24 £32440 4 (22) \aror0a) - 1679462 321 “AD” = au, Vo66O.43 ho as ani eh (34320660,4) - 10 \ (3.01) Je L* = 2BS\WNADMSO 6 300A faa Scanned with CamScanner2° tragic Solation ee Perna Sone Ewrveli Estephange. Ri Movroeconomc equlibrium eel excharye Soe syotem ah Scanned with CamScannerTecan San | Ewele | an MS, Cxparowe es pol 0: Ve nanclez chez Esleh ny Scanned with CamScanner@ Nernanbee Sonbse Emme Es lechorep Vhe mn aac ol ain independently expanse inne teers Policy Yvert \nereagey WN S000 by mo dit ing the Money Sop pls by \ye anal mone dary autho «4 iN Of ‘xed e cha age an V€qy me has negerd Ue eltPevhs becavse he equilibrium Aditya indtevead esl of ye res al ne world , ao haa CaUs€S ca Massive Pgh of copra by Wnvesdor 5, } eewhing V6 clevalvation investors j toc in jor causes deve lucrhon .. Scanned with CamScanner