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Announcement Function

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Explain the "Announcement Function" in the CSIRT Process.

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Hi,

In CSIRT, the announcement function is the one that generates information to the response team's constituencies. It provides information in different formats and has several purposes. It is either used to disclose information on ongoing threats and provide ways to protect from those threats, or to notify potential threats that may ...

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Derivation of the LM and IS schedules; using them to determine equilibrium in an economy with changing conditions

See attached file for full problem description.

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2. Let us take a look at nominal versus real interest rates . The following equations describe the economy of Hermisia:

Consumption: C=.8 (1-t) Y where t, the tax rate is .25.

Investment: I=900 -2r where r is the real interest rate.

Government: G=700

Money Demand: L=.25Y - 25(r + *) where * is expected inflation.

Money Supply: M/P = 250

a. Give a name to the expression r + *.
b. Provide an economic/financial explanation for having investment demand as a function of r ( and not
r + * ) and money demand a function of r + *.
c. Assuming that * = 0, derive an IS schedule, an LM schedule and find the equilibrium output and interest rate.

Suppose now that the FED increases the money supply form 250 to 265, a 6 % increase.. This also causes *, expected inflation, to jump from 0 to 6%.

d. Why might inflationary expectation change with the FED's announcement ?
e. Derive a new LM curve given the above changes.
f. Determine equilibrium output and both the nominal and real interest rates. Give me an accounting as to what happened compared to the nominal and real interest rate.

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