Assume the following IS-LM model:           expenditure sector:                                 money sector:          AD  =  C + I + G + NX         I      = 300 - 20i                  M   = 700           C    =  100 + (4/5)YD           G    = 120                          P    = 2          YD  =  Y - TA                       NX  = -20             md  = (1/3)Y + 200 - 10i          TA  =  (1/4)Y           How much investment (I) will be crowded out if the government increases its purchases by deltaG = 160 and nominal money supply (M) remains unchanged?

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