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Business, 05.05.2020 17:41 kataldaine

The following equations describe an economy. Y = C + I + G. C = 120 + 0.5 (Y – T). I = 100 – 10 r. (M/P)d = Y – 20r. G = 50. T = 40. M = 600. P = 2. From the above list, use the relevant set of equations to derive the LM curve. What are the equilibrium level of income and the equilibrium interest rate? LM: Y = 300 – 20r Y = 300r + 20 Y = 300 + 20r Y = 20r – 300

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The following equations describe an economy. Y = C + I + G. C = 120 + 0.5 (Y – T). I = 100 – 10 r. (...
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