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Build the is-lm function

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Reference no: EM13920780

Question:

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, please calculate again the IS-LM functions.

c. The intersection of IS-LM functions defines four areas. Please analyze the behavior of the markets for goods and money for each area.

Reference no: EM13920780

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