Given that: Consumption Investment Money supply Transaction-precautionary demand for money Speculative demand for money C = 0.7Y + 100 I = -40r +1000 Ms = 4300 L1 = 0.2Y L2 = -40r + 230 %3D

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.7P
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Given that:
Consumption
C = 0.7Y+100
I = -40r +1000
Ms = 4300
L1 = 0.2Y
L2 = -40r+ 230
Investment
Money supply
Transaction-precautionary demand for money
Speculative demand for money
%3D
%3D
:Value of interest rate (r) is
10 O
12 O
6 0
8
Transcribed Image Text:Given that: Consumption C = 0.7Y+100 I = -40r +1000 Ms = 4300 L1 = 0.2Y L2 = -40r+ 230 Investment Money supply Transaction-precautionary demand for money Speculative demand for money %3D %3D :Value of interest rate (r) is 10 O 12 O 6 0 8
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