420worksheet19 - c. What is the output? Equilibrium...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 420-002 and 004, Fall 2008 Worksheet 19 Consider the following model: C=200 + 0.75(Y-T) I=900-10(r*+θ) G=T=100 NX=100-20e r*=5 θ = 2 (M/P)=0.5Y-100(r*+θ) M=900, P=2 a. Find the IS* equation. b. Find the LM* equation.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: c. What is the output? Equilibrium exchange rate? Consumption? Investment? Net Exports? d. Now suppose the risk premium increases to 5, what is your answer to a, b, and c?...
View Full Document

This document was uploaded on 10/28/2011 for the course ECON 420 at UNC.

Ask a homework question - tutors are online