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The following equations are given with respect to a hypothetical economy. Consumption function C 15 + 0.8 Yd Investment function I 450 - 24i Exogenous
The following equations are given with respect to a hypothetical economy. Consumption function C 15 + 0.8 Yd Investment function I 450 - 24i Exogenous Government expenditure G 300 MUC Transaction demand for money Mt 0.20Y Speculative demand for money Ma 145 - 60i Supply of Money Ms 300 MUC Exports E 225 MUC Tax function T 0.25Y Import function M 5 + 0.2Y What is the equilibrium income and interest rate? What is the size of the multiplier?
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