Question

Given the following functions; S = -25 + 0.25y I = 50 – 12.5r Required; What...

Given the following functions;

S = -25 + 0.25y

I = 50 – 12.5r

Required;

  1. What are the economic meaning of the coefficient of the function
  2. Find the IS curve value
  3. Find the slope of the IS curve
  4. Comment on the value of the slope of LM curve
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