Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Mar 08, 2023

In a closed economy, the function of consumption is C = 305 +0.8Y, investment function is I = 395-200r, money demand function is Md

In a closed economy, the function of consumption is C = 305 +0.8Y, investment function is I = 395-200r, money demand function is Md = 0.4Y-100r, and money supply Ms = 150, G = T = 0. Find the IS, LM curve equation.

Step by Step Solution

★★★★★

3.50 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Economics

Authors: Robert C. Feenstra, Alan M. Taylor

3rd edition

978-1429278515, 142927851X, 978-1319029517, 1319029515, 978-1429278447

More Books

Students also viewed these Accounting questions

Question

★★★★★

Suppose that in a closed economy gdp is 10,000, consumption is 6500, and taxes are 2000 what value of government expenditures would make national saving equal 1500.

Answered: 1 week ago

Question

★★★★★

In Exercises, a consumption matrix C and a demand vector d are given. In each case, find a feasible production vector x that satisfies Equation (2). a. b. 1/2 1/41 1/2 1/2 [0.1 0.4 0.3 0.2

Answered: 1 week ago

Question

★★★★★

In working with the consumption function and the investment demand schedule, we need to distinguish between shifts of and movements along these schedules. a. Define carefully for both curves changes...

Answered: 1 week ago

Question

★★★★★

There are two major producers of corncob pipes in the world. Suppose that the inverse demand function for corncob pipes is described by p = 120 - 4g where g is total industry output and suppose that...

Answered: 1 week ago

Question

★★★★★

a. Use the current level of EBIT to calculate the times interest earned ratio for each capital structure. Evaluate the current and two alternative capital structures using the times interest earned...

Answered: 1 week ago

Question

★★★★★

Relative to an origin O, the position vectors of points A, B and C are -5i 11j, 23i 4j and (I 3j) respectively. Given that C les on the line AB, find the value of .

Answered: 1 week ago

Question

★★★★★

=+30. Carbon footprint. Here are data relating the carbon footprint (tons of CO2 per year) to the new Environmental Protection Agency (EPA) highway mileage for 82 family sedans as reported by the...

Answered: 1 week ago

Question

★★★★★

The first case at the end of this chapter and each of the remaining chapters is a series of integrative cases involving Starbucks. The series of cases applies the concepts and analytical tools...

Answered: 1 week ago

Question

★★★★★

On 1/1/2019 Big Sky Inc., issued $25,000,000, 10%, 3-year bonds, due 12/31/2021. The 5% semi-annual coupon payments are paid on June 30th & Dec 31st. At the time of issue, the stated market rate for...

Answered: 1 week ago

Question

★★★★★

Chemical Processors manufacture Wonderchem using two processes, mixing and distillation. The following details relate to the distillation process for a period:No opening work in progress (WIP)...

Answered: 1 week ago

Question

★★★★★

Arlington Air Co. exports ceiling fans to Mexico at the peso equivalent of $125 each. The Mexican peso (MXN) has recently been trading at $0.0919/MXN. If the peso depreciates to $0.0879/MXN, what...

Answered: 1 week ago

Question

★★★★★

Harold Lau will deposit enough money today so that his account will contain $20,000 in 10 years. The account will pay interest at 8% compounded semiannually. Compute the interest (in dollars) that...

Answered: 1 week ago

Question

★★★★★

Module 2: Exemplary Level (2 marks) 8) A swimmer wants to end up at a dock due north of her starting point on the south side. In still water her maximum speed is 1.25 m/s. The river has a current...

Answered: 1 week ago

Question

★★★★★

Excel File Edit View Insert Format Tools Data Window Help 11 8 ) 75% Tue 10:23 AM QE AutoSave OFF A F ? C ... SMS310 Test 2 - Student File Final Home Insert Draw Page Layout Formulas Data Review View...

Answered: 1 week ago

Question

★★★★★

A developer filed a breach of contract action against a general contractor in federal district court. If the contract was breached, the general contractor believes the fault was that of the framing...

Answered: 1 week ago

Question

★★★★★

What would be the approximate current flow in a 120 volt circuit with a 400 watt toaster and an 800 watt microwave oven attached

Answered: 1 week ago

Question

★★★★★

Castle Corp. produces three products, and is currently facing a labor shortage. The selling price, costs, and labor requirements of the three products are as follows: \ table [ [ , Product A ,...

Answered: 1 week ago

Question

★★★★★

What is the mode?

Answered: 1 week ago

Question

★★★★★

You are given the following information. The current dollarpound exchange rate is $2 per British pound. A U.S. basket that costs $100 would cost $120 in the United Kingdom. For the next year, the Fed...

Answered: 1 week ago

Question

★★★★★

Home signs a free-trade agreement with Foreign, which lowers tariffs and other barriers to trade. Both countries are very similar in terms of economic shocks, as they each produce very similar goods....

Answered: 1 week ago

Question

★★★★★

Consider a Dutch investor with 1,000 Euros to place in a bank deposit in either the Netherlands or Great Britain. The (one-year) interest rate on bank deposits is 2% in Britain and 4.04% in the...

Answered: 1 week ago

Question

★★★★★

Richard Fundt has operated the U-Need-It rental agency in a northern Wisconsin city for the past five years. One of the biggest rental items has always been chainsaws; lately, the demand for these...

Answered: 1 week ago

Question

★★★★★

A pet food producer manufactures and then fills 25-pound bags of dog food on two different production lines located in separate cities. In an effort to determine whether differences exist between the...

Answered: 1 week ago

Question

★★★★★

The Flicks is a small, independent theater that shows foreign and limited-release films. One attraction of the Flicks is that it sells beer and wine as well as premium coffee and pastries at its...

Answered: 1 week ago

Previous Question Next Question