Project #161706 - finance

Business Tutors

Subject Business
Due By (Pacific Time) 12/28/2016 07:00 pm

After reading all the available information carefully, prepare a two page (double-spaced) response and answer the following questions:
Assume that we have the following data:
C=100+0.50Y
Ip=100-20r
Mt=0.10Y
Ms=100-10r
M=80

a. Build the IS-LM function.
b. If we assume an increase in Investments by 100 units, please calculate again the IS-LM functions.
c. The intersection of IS-LM functions defines four areas. Please analyze the behavior of the markets for goods and money for each area.

 

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