Solution-Describe each of four areas defined by the is-lm

Describe each of four areas defined by the is-lm function

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Reference no: EM132706943

Assume that we have the following data:

C=100+0.50

YIp=100-20r

Mt=0.10

YMs=100-10r

M=80

a. Build the IS-LM function.

b. If we assume an increase in Investments by 100 units, calculate again the IS-LM functions.

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

Accurately described (graphically or verbally) the IS-LM functions.
Accurately describe (graphically or verbally) the shift of the IS-LM function when Investments increase by 100 units.

Problem 1: Describe each of the four areas defined by the IS-LM function and used atleast one example

Reference no: EM132706943

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Describe each of four areas defined by the is-lm function

Reference no: EM132706943

Reference no: EM132706943

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