Business and Finance: IS-LM functions, writing homework help

Read Chapters 19, 20, 21, 22 of the Textbook, Money and Banking (Robert E. Wright, Vincenzo Quadrini)

After carefully reading all the available information, prepare a two page (double-spaced) essay 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, calculate again the IS-LM functions.
c. The intersection of IS-LM functions defines four areas. Analyze the behavior of the markets for goods and money for each area.

Cite references to material that you use in preparing the essay.

 
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