Question: (b) The following equations describe an economy being measured in billions and I as a 5 percent interest rate. C=0.8(1-t)Y, t=0.25, 1=900-50i, =800, L=0.25Y-62.5i,

(b) The following equations describe an economy being measured in billions and

(b) The following equations describe an economy being measured in billions and I as a 5 percent interest rate. C=0.8(1-t)Y, t=0.25, 1=900-50i, =800, L=0.25Y-62.5i, M/P=500. (1) What is the equation that describes the IS curve. 2mks (ii) What is the equation that describes the LM curve? 2mks

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