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derive of the IS equation using the expenditure approach and assuming the absence of government.

Derive the IS equation using the expenditure approach and assuming the absence of government.

Answers

Dana
Y=C + I
Y=a+ ßY +Io - kr
Y- ßy= a + Io – kr
(1 – ß) Y = a + Io – kr
kr = a + Io - (1 – ß ) Y
r = (a + Io - (1 – ß) Y)/k
r = (a + Io)/k - (1 – ß) Y/k
Dana05 answered the question on July 18, 2019 at 19:54

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