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Econ 341
Econ 341
Is curve
Y=4[150-150i]
2. LM curve
I=-o.5+0.001y
3. i= 6.25%
y=562.5
4. G yshift
When G increases
y= 4[190-150i]
i=6.25%
New y=723 and the change =160.5
When T decreases
y=[180-150i]
New y=682.5
the change=120
5. yshift
i=6.25%
y=4[146-150i]
=546.5
6. Vertical
f= interest sensitivity of money demand
insensitive
6 8 7
9. IS curve Horizontal