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C = 100+0.8(1-t)Y I = 200- 1000i  L = 1/2Y-7000i G= 700  t = 0.33 M/P = 500 a) using the  IS - LM model show the impact of the tax cut under two assumptions : i) the government keeps interest rates constant Through an accommodating Monetary Policy.  ii) The money stock remains unchanged  B) Explain the difference in result

C = 100+0.8(1-t)Y I = 200- 1000i  L = 1/2Y-7000i G= 700  t = 0.33 M/P = 500 a) using the  IS - LM model show the impact of the tax cut under two assumptions : i) the government keeps interest rates constant Through an accommodating Monetary Policy.  ii) The money stock remains unchanged  B) Explain the difference in result

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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C = 100+0.8(1-t)Y

I = 200- 1000i 

L = 1/2Y-7000i

G= 700 

t = 0.33

M/P = 500

a) using the  IS - LM model show the impact of the tax cut under two assumptions :

i) the government keeps interest rates constant Through an accommodating Monetary Policy. 

ii) The money stock remains unchanged 

B) Explain the difference in result 

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