question archive Assume that we have the following data: C=100+0
Subject:EconomicsPrice: Bought3
Assume that we have the following data:
C=100+0.50Y
I
p
=100-20r
M
t
=0.10Y
M
s
=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.