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Need to build the is-lm function

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Reference no: EM133093314

Assume that we have the following data:p I am confused with the equation. Please help me understand better.

C=100+0.50Y

I=100-20rMt=0.10YMs=100-10rM=80

a. Need to 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. Need to analyze the behavior of the markets for goods and money for each area.

Reference no: EM133093314

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