Question

Consider an economy described by the following

Q: Answer-Consider an economy described by the following equations: C = 100 + 0.6 ∗ (Y − T) (consumption fun...

Equalize the planned expenditure and actual expenditure to obtain an equation that relates Y and r. The IS curve can be derived as 0.4Y 1000r 340.

equations: C = 100 + 0.6 ∗ (Y − T) (consumption function) I = 200 − 1000 ∗ r (investment function) G = T = 100 (government purchase and tax) where Y is the national income and r is the interest rate. Derive the IS curve.

A 0.4Y + 1000r = 340

B 0.6Y + 1000r = 240

C 0.4Y + 1000r = 240

D 0.6Y + 1000r = 340

E None of the above

Practice Next

More Research Questions

KLNJOU
In a certain code language, ‘SUPPLEMENTS’ is coded as ‘3’ and ‘MANUAL’ is coded as ‘3’ then ‘PRETTIER’ will be coded as ____ in the...
In a certain code language, 'ancient part known' is coded as 'xv nk fn', 'part tallest records' is coded as 'nd nk pw' and 'living ancient records' is code...
Which of the following of code is ‘to when’?
In a certain code language, ‘PLATFORM’ is coded as ‘OTQHVCNR’ and ‘DEMAND’ is written as ‘FPCOG’. How will ‘VANISH’ be written in th...
In a certain code language ‘THEATRE’ is coded as ‘VJGCVTG’ then, what is the code for ‘SUNSET’ in the same code language?
...
If ‘SOLVED’ is coded as ‘XVQCJK’, ‘RACING’ is coded as ‘WHHPSN’, then, ‘WATCH’ is coded as ____ in the same code language.
...
In a certain code language, ‘He is my nephew’ is coded as ‘CO PV Zs Mn’. That is my car is coded as ‘Zs Pt Pv Ga’. He is your uncle is c...
In a certain coded language, the word MENU is coded as 13-5-14-21. Following the same rule of coding, what should be the code for the word FOOD?
In a certain code language

“given words are arranged” is written as “lo so pa na”,

“letters are similar” is written as “ch f...

Consider an economy described by the following

Solution