15.* The following equation describe an economy: Consumption C = 100 + 0.8Yd Investment I = 150...
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15.* The following equation describe an economy:
Consumption C = 100 + 0.8Yd Investment I = 150 – 6i Government Expenditure G = 100 Income tax T = 0.25 Y Real demand for money M d = 0.2Y – 2i Nominal money supply Ms = 300 Price level P = 2
[where Yd stands for disposable income, and i is % interest rate, and other figures are in Rs crores].
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