3 For an IS/LM model of an economy withthe following equations: C = 200 + 0.8Yd| =220 – 25i G with bar on top = 240 stack TRwith bar on top = 150 T = .2Y L = .5Y - 3ifraction numerator M with bar on top overdenominator P with bar on top end fraction= 125 The value of the fiscal policymultiplier with respect to income is%3D4.20.842.780.22

Answered: an economy v :C = 200 + 0. top = 240…

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an economy v :C = 200 + 0. top = 240 sta

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter8: The Keynesian Model

Section: Chapter Questions

Problem 9SQP

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Question

For an IS/LM model of an economy with
the following equations: C = 200 + 0.8Yd| =
220 – 25i G with bar on top = 240 stack TR
with bar on top = 150 T = .2Y L = .5Y - 3i
fraction numerator M with bar on top over
denominator P with bar on top end fraction
= 125 The value of the fiscal policy
multiplier with respect to income is
%3D
4.2
0.84
2.78
0.22

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