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Answer the following questions:
Assume that we have the following data:
C=100+0.50YIp=100-20rMt=0.10YMs=100-10rM=80
a. Build the IS-LM function. Accurately describe the IS-LM functions.
b. If we assume an increase in Investments by 100 units, please calculate again the IS-LM functions. Accurately describe the shift of the IS-LM function when Investments increase by 100 units.
c. The intersection of IS-LM functions defines four areas. Please analyze the behavior of the markets for goods and money for each area. Describe each of the four areas defined by the IS-LM function.
Include one example
Include reference links
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