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Deriving the is and lm curves

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Deriving the IS and LM Curves

From the following information about the structural equations of a closed economy, derive the IS and LM curves, and solve for equilibrium income and the interest rate:

C = 50+0.8Y (consumption function)

I = 20-5R      (investment function)

L = 100-R+0.5Y (money demand)

M = 200 (money supply)

Hint : Y=C+I

Reference no: EM132316914

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