Assume that the money demand function is (M / P) ^ d = 2, 200 - 200r , where r is the interest rate in percent. The money supply M is 2,000 and the price level P is 2. The consumption function is given by C = 200 + 0.5(Y - T) and the investment function is I = 1.000 - 200r , where r is measured in percent , G equals 300, and T equals 200. a) What is the equilibrium level of interest rate determined at the money market?
Assume that the money demand function is (M / P) ^ d = 2, 200 - 200r , where r is the interest rate in percent. The money supply M is 2,000 and the price level P is 2. The consumption function is given by C = 200 + 0.5(Y - T) and the investment function is I = 1.000 - 200r , where r is measured in percent , G equals 300, and T equals 200. a) What is the equilibrium level of interest rate determined at the money market?
Chapter13: Inflation
Section: Chapter Questions
Problem 12SQ
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Assume that the money demand function is (M / P) ^ d = 2, 200 - 200r , where r is the interest rate in percent. The money supply M is 2,000 and the price level P is 2. The consumption function is given by C = 200 + 0.5(Y - T) and the investment function is I = 1.000 - 200r , where r is measured in percent , G equals 300, and T equals 200. a) What is the equilibrium level of interest rate determined at the
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