(Answered) Assume that we have the following

Management Studies

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.

Please provide explanantion and show working.

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Business Management, Management Studies

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