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2. In the modified version of the goods market model in which investment was endogenous (as in HW2), we determined that the equilibrium output was
2. In the modified version of the goods market model in which investment was endogenous (as in HW2), we determined that the equilibrium output was given by the following equation. Y=1b1c11[b0+c0+Gc1T] Now consider the following model: Now investment depends on both incomes and the interest rate. You may assume that b1+c1
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