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Please help with this homework assignment. Please be elaborate and original. Copy and paste will not be accepted. Revise your work before you send it back. References needed. Thanks a lot.
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.In your answer, please make sure you:
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