You are given the following information about the commodity and Money markets of a closed economy without government intervention. The commodity market Consumption function: C = 50 + 2/5Y Investment...

      

You are given the following information about the commodity and Money markets of a closed economy
without government intervention.
The commodity market
Consumption function:
C = 50 + 2/5Y
Investment function:
I = 790 – 21r

The Money Market
Precautionary and Transactions demand for
money MDT = 1/6 Y

Speculative demand for money
MDS = 1200 -18r

Money supply
MS = 1250

Determine the equilibrium levels of income and interest rate for this economy

  

Answers


Wilfred
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Wilfykil answered the question on February 6, 2019 at 11:28


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