In an economy which has a national income identity as the
following;
Y= C + I + G + NX
Where C = 1400 + 0.8 (Y-T), I = 1000-4000 r, G= 1450
T= 800 + 0.25 Y, NX= 400-0.1 Y-8 00 e
Where e= foreign currency/ domestic currency, and initially
set at e = 0.75
The money demand function is Md = 0.60 Y -84000 r, and Money
supply is set by the Central Bank at 660. All calculation...