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The expenditure function is E=E0+0.7Y-100R. The demand for money is

L=30+0.2Y-10.5R. The money supply is M0. Solve for equilibrium Y and R as

functions of autonomous investment E0 and the money supply M0. Show the effects

on the equilibrium values of changes in E0 and M0.

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Answered

31 Oct 2022

Due Date: 01 Nov 2022

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