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Help in solving the following questions. Step by step answers are recommended. All the information is provided in the questions. Thanks. 2. [22 points] Consider

Help in solving the following questions. Step by step answers are recommended. All the information is provided in the questions. Thanks.

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2. [22 points] Consider the following national income model: Y = C+I+G. C = /(Y-T). I = h(r). r = m(M'). where (3) is the macro equilibrium condition, (4) and (5) are the consumption and investment functions, respectively, and (6) is the equation summarizing the demand for money and the money market equilibrium. The variables are defined as follows: Y is national income (or total production), C is consumption, I is investment, G is government spending. 7" is tax revenue, r is the interest rate, and A" is money supply. There are seven variables and four equations so we can potentially solve for 4 endogenous variables (C, V, I, r) in terms of 3 erogenous variables (G, T, M"). Assume that f (.), h (.), and m (.) are continuously differentiable functions with 0

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