MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 16, Problem 14SQ
To determine

The equation of exchange.

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Find simultaneous equilibrium for the goods and money market when C = $100 + 0.80Yd, I = $150 – 6i, Tx = 0.25Y, G = $100, L = 0.20Y – 2i, and M = $150.
Irving Fisher's equation of exchange is expressed as   a. V = (PL × T)/MS.     b. MS × T = PL × V.     c. MS × PL = V × T.     d. MS/V = PL × T.
From the following information, calculate the equilibrium values of Income (Y), interest rate (i) investment (I), net exports (NX), and money demand (md).
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