Desired consumption is
Cd = 20 + 0.5Y – 0.1r and
desired investment is Id = 30...
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Economics
Desired consumption isCd = 20 + 0.5Y – 0.1r anddesired investment is Id = 30 – 1.5r.G is 15 and Y is 100. Real money demand isMd/P = 5 + Y – 0.3i.Provide economic reasons to interpret:
        (a) the consumption function with respect to its components.
the investment function with respect to its components.
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