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In a closed economy, here are the demand equations for consumption, investment, and government spending: C-360-200*r+0.1y 1=120-400*r G=120 2. The demand function for real
In a closed economy, here are the demand equations for consumption, investment, and government spending: C-360-200*r+0.1y 1=120-400*r G=120 2. The demand function for real cash balances is written as: M/p=100+0.2Y-2000i Assume that M-300, P=2.0, pi^e=0 a-what is the equilibrium real interest rate for Y=550, Y=600, Y=650 b. What is the equation of the LM curve?
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ANSWER To find the equilibrium real interest rate and the equation of the LM curve we need to set the demand for real cash balances equal to the supply of real cash balances Given C 360 200r 01Y Deman...
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College Accounting A Practical Approach
Authors: Jeffrey Slater, Brian Zwicker
11th Canadian Edition
132564440, 978-0132564441
