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4) (20 points) The government of Happyland has budgeted an expenditure of 150 million Happydollars (their local currency). The information below describes the macroeconomic situation
4) (20 points) The government of Happyland has budgeted an expenditure of 150 million Happydollars (their local currency). The information below describes the macroeconomic situation of Happyland: C = 100+ 0.8*Yd; T = 20-0.125*Y; 1 = 666 - 30*r; (M/P) = 4*Y-80*r, and MS/P = 6'000 with P=1. where variables (Y , Y, T, C, I) are expressed in million Happydollars and r is the interest rate expressed in percentage points (i.e. you don't need to change basis and should interpret r = 10 as a 10% interest rate). Note that Y (disposable income) is not the same as Y (income). Given the previous information for the goods and services market and the money market, you are requested to answer the questions below
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