In: Economics
1. Indicate the effect of each of the following policies on the variables: Y, C, S, r, I, Ms, and Md
2. The Lupland economy is represented below:
C=100+0.8Y
S=-100+-0.2Y
I= 120-5i
Ms= 120
Md= 0.2Y-5i
Find equilibrium level of income and interest rate, show the results on IS-LM graph.