IS LM, Finance Basics

After carefully reading all the available information, prepare a two page (double-spaced) essay and answer the following questions:
Assume that we have the following data:
C=100+0.50Y
Ip=100-20r
Mt=0.10Y
Ms=100-10r
M=80

a. Build the IS-LM function.
b. If we assume an increase in Investments by 100 units, calculate again the IS-LM functions.
c. The intersection of IS-LM functions defines four areas. Analyze the behavior of the markets for goods and money for each area.
Posted Date: 3/13/2016 2:36:24 PM | Location : United States







Related Discussions:- IS LM, Assignment Help, Ask Question on IS LM, Get Answer, Expert's Help, IS LM Discussions

Write discussion on IS LM
Your posts are moderated
Related Questions
term paper about financial markets in pakistan

Ask question #Minimum what are the challenges that a finance manager may face?

Example of Earnings Yield Valuation Estimated maintainable earnings are £240,000 per annum; rate of return required is 25 percent. Calculate the value of the business. V

Baumol's Model - Optimal Cash Balance An application of the EOQ is the Baumol's model which is inventory model to cash management. Its statements are as: The firm emplo

1 st bank offers you a car loan at an annual interest rate of 10% compounded monthly. What effective annual interest rate is the bank charging you?  Solution - Calculate

Discounts and Credit Terms Credit Terms Credit terms involve both the length of the credit time and the discount specified.  The terms 2/10, n/30 means that a 2 percent d

ascascasc

Book Value and Market to book value per share Book value per share (BVPS)  = Net worth Equity/No. of ordinary shares It is called also liquidity ratio that show

Financial Forecasting Financial forecasting refers to determination of the firm of financial requirements in advance. Financial forecasting is needs financial planning using b

What role do primary financial markets play in our economy? What role do secondary markets fill? Describe the relationship that exists between financial institutions and financial