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IS and LM Curves Assignment | Homework For You

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December 9th, 2019

IS LM curves Practice problem 7: Assume following (equations) summarize/represent structure of economy. If: C=Ca + 0.75(Y-T) Ca=800-25r T=400+0.2Y Ip=600-25r G=1200 (M/P)^d = 0.2Y-20r M^s/P=700

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Homework For You

1. What are equations for IS and LM curves? What is equilibrium level of income and interest rate? What if mix of fiscal and monetary policies is changed. Te money supply is increased by 100 while government spending reduced by 250:

2. Does investment increase, decrease or remain unchanged? Why/calculate.

3. Does consumption increase, decrease or remain unchanged? Why/calculate. Get Economics homework help today

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