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Consider an economy in which the price level is equal to one unit and the goods and money market are described by the following equations:
Consider an economy in which the price level is equal to one unit and the goods and money market are described by the following equations:
- consumption C = 400 + 0.2(Y-T)
- investment I = 80 + 0.5Y -10r
- G=T= 100
- Money Demand Md = 100 + Y - 50r
- Money supply Ms = 100
Find the equilibrium r.
- A.8.0
- B.17.8
- C.20.2
- D.22.4
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