C = 60 + .8Yd
I = 150 - 10r
G = 250
T= 200
MS = 100
MD = 40 + .1Y - 10r
a. Write the equations for the IS and LM schedules
b. Find the equilibrium values for Y and r
2. Now assume the same figures as above but with a completely interest inelastic Investment (I).
a. Write the new equations for the IS and LM schedules
b. Find the new equilibrium values for Y and r
c. Show the schedules graphically