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
In a mathematics examination the average grade was 82 and the standard deviation was 5. all students with grade from 88 to 94 received grade of B. if the grade are approximately no

what are the methods of sampling

difference of them for covering the following: 1.purpose of reporting 2.FORMAT OF INCOME STATEMENT

In the 2011 federal election, 30.6% of the electorate voted for the New Democratic Party (NDP). (a) A year later, a national poll of 1836 respondents indicated that 36% support the

Question 1 A courier company conducted a brainstorming session amongst drivers to ascertain the reasons why it was unable to deliver items to households, always right first ti

what is the largest coefficient of (1+3x)^4 is ?

A company wishes to issue new preference shares; the company will incur flotation cost of 2% per share. the market value of this shares is $90 per share & a nominal value of $100 p

prof. ya-lu-chan definitions statistices

Explain the term “Trial Balance” and its needs for an organization. Ans. A Trial Balance is a statement of summarization of the all the involved ledgers accounts at the end of th

The skewness is a measure of asymmetry and it is positive at 0.15 meaning that it is greater than zero which reveals that the tail extends to the right slightly indicating the dist