Determine the equilibrium level of output and interest rate given: Consumption: C(Y-T) = .5(Y-T) + 30...

 

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Determine the equilibrium level of output and interest rate given: Consumption: C(Y-T) = .5(Y-T) + 30 Investment: I(r) = 20-r Taxes: T-10 Government Spending: G = 10 Real Money Demand: L(r, Y) = .5Y -r + 10 Money Supply: M = 300 Price: P = 5 O 95 and -2.5 120 and 5 105 and 2.5 100 and 0 Determine the equilibrium level of output and interest rate given: Consumption: C(Y-T) = .5(Y-T) + 30 Investment: I(r) = 20-r Taxes: T-10 Government Spending: G = 10 Real Money Demand: L(r, Y) = .5Y -r + 10 Money Supply: M = 300 Price: P = 5 O 95 and -2.5 120 and 5 105 and 2.5 100 and 0

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