In economics, the IS curve is a linear equation that represents all combinations of income Y and

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In economics, the IS curve is a linear equation that represents all combinations of income Y and interest rates r that maintain an equilibrium in the market for goods in the economy. The LM curve is a linear equation that represents all combinations of income Y and interest rates r that maintain an equilibrium in the market for money in the economy. In an economy, suppose that the equilibrium level of income (in millions of dollars) and interest rates satisfy the system of equations 

[0.05Y – 1000r = 10 0.05Y + 800r = 100


Find the equilibrium level of income and interest rates.

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Related Book For  answer-question

Precalculus

ISBN: 978-0321716835

9th edition

Authors: Michael Sullivan

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