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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 is 4D 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 pe LM = 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

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