Cf der 4° (important
S- LM erg )
1s ogut C’Ertum Ca Goods irk. (weyttag tn chs)
YeEp
4. C+Ip+ G+Nx
ifissumt : C=ta+ e( 9-7)
rate 7 =T-¢ > Taturest vate.
judd Sax P pos interest vade sensidvity of
|p InP does mot maxe 26h Ain Ip tf BS small vumber
| Y= @+e(Y-T)+T- ee +e+ ne
| YQ ee Y-eT AT- be + G4 UY Ap= Cael 41+64Nx
Ye Ap - Sr
Y-cU = Ap - 6F
ory] S(a-e) =Ap-6r : = ~
a Yel x Ap
VTL) fp SF] comple 3s” 8)
| ( ta) TS cgpation’ y= aC Ap bY
ee i a
‘Drow TS equacion
an 7
‘ap | for dheawi'ng ie ek ‘Geft
we ee ron ter keh arale
4 se Eee TS 7
Y= ofAp- 6r
used!
rl dAp ty
ASS
Ti#p 1 y
, bt
| Pwerept » AP Slope -L
rhe
is4D 44.45
Chapter ¥ (contiuse)
TS- LM- nodel
TS_ eal sium fi goods mek.
Cau 2 Uren
recipe eas
4) ¢=¢a +(Y-T)
cid
=a +e(Y-T)+T-br+ 6 + Ux
Year oU-eFe Tbe 1G rue Ape GeO +E Gay
J=Ap- er+cy
Y-e4= Ap - 6r
eon ere
gL par
ye (4) (4p- 6) (ts model)
ka A: (Ap- br) where el AW
for pumarvoa! my
Epo fants by
Cf we Ore bouts PF alone
peLM = eps keGnum wn os ket
fe nominal money Sup
_ rea mov sappy constant number
jth = (lected By contrat "Gankd) notafunetoe
Spy® . money damdind, real mony domasd kaw meh
Pp mondy you wast, depend 4 ou Treome, pos bua.
funchou , depenol On r* ve, te Alek rc
Hic viore Wwe prefer to rhe! Cau,
| tian, +o bole rant On on ee. KY-hr
ae moto muniey clean es the ¢
pner , Ha higtiur the pre, tHe luigter ve 9
kip fa liad,
LM : equr€ < a Money marke.
ms. me
e
ne = KY-NC so (fared ou of Dreome curd Duterest 2X
for uumer®cak eyample have Y alone (MS
[ie 4 hr = kY for curouring Gave + alone on
nes stde: K tsanaol -
‘cn ms hr Sie oe eee ‘
heel Lf be i The akKy- mi ke Gf
(im epcl) a ie
!
|
F ch
Ca &
2 S0Re Rie) upare slope
| no Reto. sens wsiRy mP
abe 0° he tuterest TAR, censatiurh
>|
2
7
2
~~
a
|
Zl
TE]
w
+
eat