Show the investment function in the IS-LM model, Macroeconomics

Assignment Help:

Q. Show the investment function in the IS-LM model?

The investment function in the IS-LM model

Investment was an exogenous variable in cross model owing to the fact that interest rate was exogenous. Now that interest rate is endogenous, investment will be endogenous. As for classical model, investment relies negatively on the real interest rate but then since R = r in the IS-LM model, we can make investment a function of R: I = I(R).

Related Discussions:- Show the investment function in the IS-LM model

Imputed values included in gdp, Imputed values included in GDP are the: ...

Imputed values included in GDP are the: A) market prices of goods and services. B) estimated value of goods and services that are not sold in the marketplace. C) price of

Central banking, what is credit multiplier?

what is credit multiplier?

Find the equilibrium quantities and prices , Consider the following simple ...

Consider the following simple economy which consists of two industries, guns (1) and butter (2) and is characterized by the following input-output matrix. Suppose also that

#title neo classical labor market in long run, brifly explian

brifly explian

Calculate the actual velocity profile, You are developing a sampling protoc...

You are developing a sampling protocol whereby you're going to insert a probe into a turbulent flow in a circular conduit of radius R. a. Using a description of a velocity profi

State about the international capital flow, State about the international c...

State about the international capital flow An international capital flow is defined as movement of money for the purpose of speculation or investment between countries. It inc

MR, Question 1: Consider a two-period, two-person pure exchange economy. Ut...

Question 1: Consider a two-period, two-person pure exchange economy. Utility functions and endowments are given as follows. u1(x0; x1) = (x0x1)2 and e1 = (18; 4) u2(x0; x1) = ln x0

What are the gains from trade, Shows the productivity for the countries Pin...

Shows the productivity for the countries Pin and Pang. Machines Bread Pin 4 or 3 Pang 3 or 8 1) If the working population of Pin and Pang are both 6 million, divide

How government always reduce the budget deficit, Can the government always ...

Can the government always reduce the budget deficit by simply increasing taxes? Why or why not? Please explain your answer using the Laffer curve. In addition, use research and sho

Allocate their scarce resources, What are the three methods that societies ...

What are the three methods that societies have used to allocate their scarce resources? Give an example of each method. Give an example of a good that uses all three methods at onc

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages