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:
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.