QUESTION 3 Let the money demand function be L(Y)=50-25r+5Y where r is the real interest rate....

 

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QUESTION 3 Let the money demand function be L(Y)=50-25r+5Y where r is the real interest rate. Suppose the price level is P-2 and the money supply is MS-500. Which of the following equations describes the equilibrium in the money market? Y-5-40 2Y-5-40 Y-2r=40 3Y-51-40 QUESTION 4 Let the consumption function be C=10+ 0.5(Y-T) and the investment function be = 17-r where is the real interest rate, T denotes taxes and G denotes government expenditures Let T-10 and G-5 Which of the following equations describes the equilibrium in the loanable funds market? 1+2Y=54 2r-Y=54 5r+Y=54 2-3Y-54 Click Save and Submit to save and submit. Click Save All Answers to save all answers. QUESTION 3 Let the money demand function be L(Y)=50-25r+5Y where r is the real interest rate. Suppose the price level is P-2 and the money supply is MS-500. Which of the following equations describes the equilibrium in the money market? Y-5-40 2Y-5-40 Y-2r=40 3Y-51-40 QUESTION 4 Let the consumption function be C=10+ 0.5(Y-T) and the investment function be = 17-r where is the real interest rate, T denotes taxes and G denotes government expenditures Let T-10 and G-5 Which of the following equations describes the equilibrium in the loanable funds market? 1+2Y=54 2r-Y=54 5r+Y=54 2-3Y-54 Click Save and Submit to save and submit. Click Save All Answers to save all answers.

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1 Md MSP 50 25r 5Y 5002 5Y 25r 200 5Y 5r 54... View the full answer