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in a clear and concise manner answer the following question: In.) Consider an IS.-LM model of an economy with the following equations C = 220
in a clear and concise manner answer the following question:
In.) Consider an IS.-"LM model of an economy with the following equations C = 220 + 0.?5Yd I_= 165 101 G: 490' TE: 300 T = .1555 L = .2Y 3i Er..-=? = 550 [a] Using the above data. derive the equation for the IS curve. {b} 'What is the equation for the LM curve? [c] Calculate the equilibrium level of income and interest rates. Sketch the relevant diagram. (d:- 'What are the values of the monetary policy multiplier with respect to income and interest rates? If the money supply is reduced by 513'= what are the new market-clearing income and interest rate levels? [All calculations to two decimal points]Step by Step Solution
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