Given that: Consumption Investment C = 0.7Y +100 I = -40r + 1000 = 4300 |3D Money supply Transaction-precautionary demand for money Speculative demand for money L1 L2 = -40r + 230 Ms 0.2Y |3D %3D ;Value of interest rate (r) is

Given that: Consumption Investment C = 0.7Y +100 I = -40r + 1000 = 4300 |3D Money supply Transaction-precautionary demand for money Speculative demand for money L1 L2 = -40r + 230 Ms 0.2Y |3D %3D ;Value of interest rate (r) is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Given that:
C = 0.7Y + 100
Consumption
Investment
%3D
I =-40r + 1000
Money supply
Transaction-precautionary demand for money
Speculative demand for money
Ms = 4300
L1 = 0.2Y
L2 = -40r + 230
%3D
%3D
;Value of interest rate (r) is
10 O
12 O
60

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