Build the is-lm function

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Reference no: EM131249235

After read all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions:

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: EM131249235

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len1249235

10/20/2016 1:41:13 AM

Please explain detailed in words how you reached all the variables in the solution previously provided. I need to understand how you got to all the answers but in plain english not with equations.

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