Business, 18.06.2021 14:00 matius0711

Use the following information to solve two questions. C = 100 + 0.8Yd (Consumption), I = 200 –1,000i (Investment) L = Y – 10,000i (Money Demand) G = 550, T = 500, Ms = 900, Yd = Y – T

A). Find the equilibrium level of Y, I, C and interest rate (i).

B). Suppose the independent investment is decreased up to 90 from 200. (A) Find the new equilibrium level of Y, C and i. (B) How much does Bank of Korea change the money supply to get the initial level of GDP?

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Use the following information to solve two questions. C = 100 + 0.8Yd (Consumption), I = 200 –1,000...

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