The commodity market for a simple two sector . economy is in equilibrium when Y= C + I, the money market is in/equilibrium when the supply of money (M,) equal money demand (Ma Which in turn is...


The commodity market for a simple two sector<br>. economy is in equilibrium when Y= C + I, the money<br>market is in/equilibrium when the supply of money<br>(M,) equal money demand (Ma Which in turn is<br>composed of the transaction demand for money<br>(M7) and the speculative demand for money (M,),<br>Assume a two- sector economy where<br>C=48 + 0.8 Y, = 98- 75 i<br>M, = 250, M, = 0.3 Y and M,= 52- 150 i<br>%3D<br>%D<br>

Extracted text: The commodity market for a simple two sector . economy is in equilibrium when Y= C + I, the money market is in/equilibrium when the supply of money (M,) equal money demand (Ma Which in turn is composed of the transaction demand for money (M7) and the speculative demand for money (M,), Assume a two- sector economy where C=48 + 0.8 Y, = 98- 75 i M, = 250, M, = 0.3 Y and M,= 52- 150 i %3D %D

Jun 09, 2022
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