Given the following informations; Consumption(C) 800+0.9Y, Where Y-Income Investment (I) =8000-800r, where r=interest rate Money Supply (Ms) =28500 Demand for Money (Md) =0.75Y-1500r and if the autonomous Investment decreased then income decreased and interest rate increased. income increased and interest rate decreased. O income decreased and interest rate decreased income increased and interest rate increased
Given the following informations; Consumption(C) 800+0.9Y, Where Y-Income Investment (I) =8000-800r, where r=interest rate Money Supply (Ms) =28500 Demand for Money (Md) =0.75Y-1500r and if the autonomous Investment decreased then income decreased and interest rate increased. income increased and interest rate decreased. O income decreased and interest rate decreased income increased and interest rate increased
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Given the following informations;
Consumption(C) 800+0.9Y, Where Y-Income
Investment (I) =8000-800r, where r=interest rate
Money Supply (Ms) =28500
Demand for Money (Md) =0.75Y-1500r
and if the autonomous Investment decreased then
%3D
income decreased and interest rate increased.
income increased and interest rate decreased.
O income decreased and interest rate decreased
income increased and interest rate increased
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