Suppose in a two-sector model, consumption and investment functions are as follows: C = 600 + 0.80Y

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Suppose in a two-sector model, consumption and investment functions are as follows:

C = 600 + 0.80Y I = 1160 − 20r Th e demand for money and the supply of money are L = 0.20Y − 50r M = 1200

(a) Find the equation of the IS curve.

(b) Find the equation of the LM curve.

(c) Find the simultaneous equilibrium for the IS and LM curves.

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Managerial Economics

ISBN: 9788131775622

1st Edition

Authors: Vanita Agarwal

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Question Posted: Nov 07, 2024 04:00 AM

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Suppose in a two-sector model, consumption and investment functions are as follows: C = 600 + 0.80Y

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Managerial Economics

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