Question: Please help me with at least A and B ive posted this question 4 times any help is appreciated thanks! Goods market C=100+.8(y-t)=900-300i M=5000 g=500
Please help me with at least A and B ive posted this question 4 times any help is appreciated thanks!
Goods market
C=100+.8(y-t)=900-300i
M=5000 g=500 t=300 L=.5y-200i
Tb=400(1-4/e)-.2(y-200) p=20 ^e=0
A. Find the home countries equilibrium interest rate,I, and the investment output, Y, calculate consumption, investment ,trade balance, and the exchange rate at the home economies equilibrium
B. Given that the monetary authority of the economy reduces the money supply to 3000 find the home countries new equilibrium levels of output, consumption, investment, interest rate, exchange rate and balance rate.
SHOW YOUR WORK!!!
C. Use is-lm-fx graph and illustrate in words how this change in money supply affects the Economy. On your graph label the following values of the equilibrium, home output, interest rate, exchange rate, and domestic return for both m=5000 and m=3000
WORK AND GRAPH
D.provide appropriate economic intuition behind the direction of change in the home economy output, consumption, investment, interest rate, trade balance, exchange rate
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