What is the equilibrium level of r

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Reference no: EM13159516

Suppose the economy is represented by the following equations:

Md/P = 6Y %u2013 120r Ms/P = 5,400

C = 180 + 0.7(Y-T) I = 100 %u2013 18r + 0.1Y T = 400 G = 400

Y = C + I + G

a. Write the numerical formula for the IS curve?

b. Write the numerical formula for the LM curve?

a. What is the equilibrium level of r?

b. What is the equilibrium Y?

c. What is the value of consumption?

d. What is the value of Investment?

e. What is the level of real Money Demand?

Reference no: EM13159516

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