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Assume that we have the following data: C=100+0.50Y Ip=100-20r Mt=0.10Y Ms=100-10r M=80 IS isY= 100+0.5Y + 100-20r, thus Y=400-40r. LM is 80 = 0.10Y +

Assume that we have the following data:

C=100+0.50Y

Ip=100-20r

Mt=0.10Y

Ms=100-10r

M=80

IS isY= 100+0.5Y + 100-20r, thus Y=400-40r.

LM is 80 = 0.10Y + 100-10r. thus Y=100r-200.

If we assume an increase in Investments by 100 units, please calculate again the IS-LM functions.

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