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In an economy, desired consumption and investment functions are: cd = 310 + 0.60(Y-T) - 220r id = 260.0 - 270r. Taxes an
Posted: Thu May 19, 2022 9:17 am
by answerhappygod
- In An Economy Desired Consumption And Investment Functions Are Cd 310 0 60 Y T 220r Id 260 0 270r Taxes An 1 (69.85 KiB) Viewed 74 times
In an economy, desired consumption and investment functions are: cd = 310 + 0.60(Y-T) - 220r id = 260.0 - 270r. Taxes and government purchases are T= 25 + 0.20 Y G= 50. In this economy, the full-employment level of output is 1,000. Find an equation that relates the level of output to the real interest rate that clears the goods market; this equation describes the IS curve. (Hint: Write the goods market equilibrium condition and solve for Y in terms of r.) Y= -r. (Enter your responses rounded to the nearest integer.) r.