Prepare a two page (double-spaced) essay and answer the following questions:
assume that we h...
Prepare a two page (double-spaced) essay and answer the following 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, calculate again the is-lm functions.
c. the intersection of is-lm functions defines four areas. analyze the behavior of the markets for goods and money for each area.
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