Question
Given the following information for an open economy: Consumption, C = 120 + 0.85 Yd (disposable income); Private investment, I = 100 - 8 i;
Given the following information for an open economy: Consumption, C = 120 + 0.85 Yd (disposable income); Private investment, I = 100 - 8 i; Public spending = 140; Income tax, t = 0.2; Transfers Tr = 0, Exports X = 130; Imports, M = 34 + 0.08Y; Money supply, M / P = 28; Money demand, L = 0.2Y-50i.
Find the equation of the IS function, the equation of the LM function, the equilibrium interest rate i, the equilibrium income Y, and the open economy investment multiplier k.
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Rethinking Public Private Partnerships
Authors: Mervyn K. Lewis
1st Edition
1789906393, 9781789906394
