Show what happens to the equilibrium conditions in Problem 4 23 if autonomous investment drops to 97 If I0 97, the IS equation becomes A fall in autonomous investment, ceteris paribus, leads to a decrease in the equilibrium level of income and a drop in the interest rate Y 89 0 6Y 97 150i 0 4Y 150i...

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Show what happens to the equilibrium conditions in Problem 4.23 if autonomous investment drops to 97. If

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Show what happens to the equilibrium conditions in Problem 4.23 if autonomous investment drops to 97.

If I0 = 97, the IS equation becomes: image text in transcribed

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A fall in autonomous investment, ceteris paribus, leads to a decrease in the equilibrium level of income and a drop in the interest rate.

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Schaum S Outline Of Mathematical Methods For Business Economics And Finance

ISBN: 978-1264266876

2nd Edition

Authors: Luis Moises Pena Levano

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Question Posted: Sep 20, 2024 06:03 AM

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Show what happens to the equilibrium conditions in Problem 4.23 if autonomous investment drops to 97. If

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Y = 89+0.6Y +97 - 150i 0.4Y+150i - 186 = 0 (4.63)

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Schaum S Outline Of Mathematical Methods For Business Economics And Finance

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