Calculate the is-lm functions

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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: EM132525146

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