Question
Suppose the central bank's monetary policy sets the interest rate according to the function: i = 6 + 2( - * ) with * =
Suppose the central bank's monetary policy sets the interest rate according to the function:
i = 6 + 2( - *) with *= 5,
and aggregate expenditure is:
AE = 96 + 0.2Y - 8i
a)What is the equation for the AD curve? Use 'PI' to represent when entering your equation.
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Financial Accounting
Authors: C Thomas,
12th Edition
007760086X, 9780077600860
