Using the LM equation
At equilibrium
Money demand = money supply
4000=0.2Y-10r
10r=-4000+0.2Y
r=-400+0.02Y
Using the IS equation
Y=C+I
Y=400+0.75(Y-70-0.2Y)+200-100r
r=547.5-100r
At equilibrium IS=LM
-400+0.02Y=5.475-0.01Y
Y=19308±
C=3348.7
T=3981.6
M=1308.48
I=1584
Dana05 answered the question on August 14, 2019 at 07:30
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