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5. What are the equilibrium values of the interest rate, r, and investment, I? (Hint: use the MP R or IS, and I(r) equations.) C(Yd)
5. What are the equilibrium values of the interest rate, r, and investment, I? (Hint: use the MP R or IS, and I(r) equations.)
C(Yd) = 58 + 0.6 Yd
I(r) = 52 0.2 r
G = 180
t = 0.4 (represents 40%)
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Econometric Analysis
Authors: William H. Greene
7th edition
131395386, 131395381, 978-0131395381
