For an economy the following functions have been given: C = 100 + 0.8Y S = -100 + 0.2Y I = 120 – 5r Ms = 120 Md = 0.2Y – 5r Calculate the following: 5.1.1. IS equation 5.1.2. LM equation 5.1.3. Equilibrium level of income
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For an economy the following functions have been given:
C = 100 + 0.8Y
S = -100 + 0.2Y
I = 120 – 5r
Ms = 120
Md = 0.2Y – 5r
Calculate the following:
5.1.1. IS equation
5.1.2. LM equation
5.1.3. Equilibrium level of income
5.1.4. Equilibrium level of interest rate.
5.1.5 Calculate National saving.
5.1.6 Calculate money demand
5.1.7 Find consumption
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