What is the lm and is curve, Basic Statistics

Assignment Help:

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?

 

 


Related Discussions:- What is the lm and is curve

Interpret predictability and behaviou, Shafts are cut to length by two mach...

Shafts are cut to length by two machines, A and B. Each machine cuts 50 percent of all shafts in approximately the same amount of time. Machine A''s shafts are all good, but Machin

Time series, what are the importances of time series

what are the importances of time series

Quantitative analysis, How has quantitative analysis changed the current sc...

How has quantitative analysis changed the current scenario in the management world today?

De Broglie hypothesis and Heinsberg’s uncertainty principle, According to d...

According to de Broglie hypothesis and Heinsberg’s uncertainty principle, if and electron is to exist inside the nucleus, it should posses energy ranging from 20 MeV to 200 MeV. B

Question from inventory, CASE STUDY 1 3 MARKS An audit of the...

CASE STUDY 1 3 MARKS An audit of the accounting records of Loch Ness Ltd. for the year ending 30 June 2012 discovered that the ending inventory balance

Standard deviation, define standard deviation. their purpose,uses,advantage...

define standard deviation. their purpose,uses,advantages nd disadvantages,examples ,formula for grouped and ungrouped.

R programm, 1. Generate a large dataset ( at least 1000 observations) µ wit...

1. Generate a large dataset ( at least 1000 observations) µ with a known mean, µ between 20 and 40 and variance s = 9 using rnorm(). identify it as D. Use the functions mean() and

Prepare the journal entries, 1. Unrestricted cash contributions receiv...

1. Unrestricted cash contributions received during the year, $300,000. 2. Restricted cash contributions were received during the year for the following: Education

Discrete random variable, ABC company has 2000 accounts receivable. The mea...

ABC company has 2000 accounts receivable. The mean and standard deviation are $300 and $50, respectively. Assume that the accounts are normally distributed.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd