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5. (15 points) Consider the following version of the IS-LM model Goods Market: Y =C+I+Go C = C(Y - T), I = I(r, Bo), T
5. (15 points) Consider the following version of the IS-LM model Goods Market: Y =C+I+Go C = C(Y - T), I = I(r, Bo), T =T(Y, Go) where 0 0, and IBo > 0 where Bo represents investor confidence. Money Market: Ma = L( Y, r) MS = Mo where Ly > 0 and Ly
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