Question: A ) If C = 5 0 0 + 5 ( Y - T ) , I = 2 0 0 - 5 0 r
A If government spending is and taxes are Find the equation of the is curve.
B The money demand function is given by Find the equation of th UM curve if Money supply is and the price level is Now solve for equilibrium income and interest rate from the ISLM curves in A and B
C If the money supply is raised to and all the other variables are the same solve for the new equilibrium income and interest rate.
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