Question
Suppose the central bank's monetary policy sets the interest rate according to the function: i = 4 + 3( - * ) with * =
Suppose the central bank's monetary policy sets the interest rate according to the function:
i = 4 + 3( - *) with *= 3,
and aggregate expenditure is:
AE = 65 + 0.4Y - 5i
a)What is the equation for the AD curve?
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Capital In The Twenty-First Century
Authors: Thomas Piketty, Arthur Goldhammer
1st Edition
067443000X, 9780674430006
