Question: Need help With Question E. Not sure how to solve it. C = 200 + 0.25Yd 1 = 150 + 0.25Y - 1000i G =

Need help With Question E. Not sure how to solve it.

C = 200 + 0.25Yd 1 = 150 + 0.25Y - 1000i G = 250 T = 200 i = 0.05 a. Derive the IS curve. b. What are the equilibrium levels of GDP and the interest rate in this economy? c. What is the level of the real money supply? Use the expression: M/P = 2Y - 8000i d. Solve for equilibrium values of C and 1. Use these values to verify the value you obtained for Y. e. Suppose that government spending increases to G = 400. What are the effects of expansionary fiscal policy on Y, 1, C and the real money supply

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