What is the lm and is curve, Basic Statistics

Consider an economy specified by the following:

      Y = PE = C + I + G + NX                            (Income identity)

      C = 400 + 0.9YD                                      (Consumption)

      I = 200 - 1,800i                                        (Investment)

NX = 200 - 0.1Y - 200i                                      (Net exports)

MD = (0.8Y - 3,000i)                                       (Money demand)

Also assume that government spending G = $200, the tax rate t = 0.3333, and the money supply MS = $1,104 (and assume the price level is constant at P = 1).

a.  What is the IS curve?

b.  What is the LM curve?

c.  What are the values of income (Y) and the interest rate (i) when the IS-LM model is in equilibrium?

 

 

Posted Date: 2/21/2013 8:11:15 AM | Location : United States







Related Discussions:- What is the lm and is curve, Assignment Help, Ask Question on What is the lm and is curve, Get Answer, Expert's Help, What is the lm and is curve Discussions

Write discussion on What is the lm and is curve
Your posts are moderated
Related Questions
Consider the sample data for plants A, B, C & D of the above company, which are tabulated in table 1. Test whether the four means are equal at the 5% level of significance. Perform

1. A researcher was interested lowering the high school dropout level in his county. He measured the reading level of students entering middle school (based on a standard test) and

Why do Jovian planets have rings? - Ring particles cannot have lasted for billions of years so the particles we see today must have been created recently. - New ring particles

Find a population data set that contains six entries, has a mean of 5, and has a standard deviation of 2

do you give the answers with the way you figured the problem out?..

how do I find the cost of inventory?

Hi there, I am designing a research study for my undergrad in Online Relationship. I am having some trouble with my professor accepting my proposed research model and survey questi

Question: Imagine that your client, Hillside County Forest Preserve (HCFP), is considering how best to protect their natural lagoons.  They have asked for your help, and you ha

A drainage system overows into a river causing pollution when the rainfall falling in an hour exceeds 50 mm. During any given year, the maximum hourly rainfall follows an exponenti

Consider an economy specified by the following:       Y = PE = C + I + G + NX                            (Income identity)       C = 400 + 0.9YD