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Unformatted text preview: C = C + b ( Y T ) 2 M d = M s 3 I = I r 4 T = tY a) Use Cramers rule to solve for the equilibrium level of income and interest rates, Y e and r e . b ) From your solution for Y e what is the coe cient in front of M s ? What is its sign? What is the economic interpretation of this coe cient? 1...
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This note was uploaded on 09/13/2009 for the course EOCNOMICS Econ 331 taught by Professor Kelvinkwainger during the Spring '09 term at Simon Fraser.
- Spring '09