Answered: Given that: Consumption Investment…

Given that: Consumption Investment Money supply Transaction-precautionary demand for money Speculative demand for money C = 0.7Y + 100 I = -40r +1000 Ms = 4300 L1 = 0.2Y L2 = -40r + 230 %3D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Given that:
Consumption
C = 0.7Y+100
I = -40r +1000
Ms = 4300
L1 = 0.2Y
L2 = -40r+ 230
Investment
Money supply
Transaction-precautionary demand for money
Speculative demand for money
%3D
%3D
:Value of interest rate (r) is
10 O
12 O
6 0
8

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