In the real sector, the following data are available: Consumption Function C = 100 + 0.75Y Investment function I = 60 - 200r Meanwhile, the Monetary sector provides the following data: The amount of money in circulation = 500 Money demand function for Transactions and just in case L1 = 0.2Y Money demand function for Speculation L2 = 428 - 400r Question: a. Determine the interest rate at the time of the General Equilibrium, and what is the equilibrium national income b.Prove that the General Equilibrium really exists! c. The general equilibrium conditions mentioned above can be expressed in a graph

In the real sector, the following data are available: Consumption Function C = 100 + 0.75Y Investment function I = 60 - 200r Meanwhile, the Monetary sector provides the following data: The amount of money in circulation = 500 Money demand function for Transactions and just in case L1 = 0.2Y Money demand function for Speculation L2 = 428 - 400r Question: a. Determine the interest rate at the time of the General Equilibrium, and what is the equilibrium national income b.Prove that the General Equilibrium really exists! c. The general equilibrium conditions mentioned above can be expressed in a graph

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section: Chapter Questions

Problem 2SQP

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