SOLUTION: Consider the macroeconomic model defined by a. Show that this system can be written as Ax =b, where. [2 marks] b. Use Cramer’s rule to show that. [3 marks] c.

Question 1169680: Consider the macroeconomic model defined by

a. Show that this system can be written as Ax =b, where. [2 marks]

b. Use Cramer’s rule to show that. [3 marks]

c. Write down the government expenditure multiplier for r. [3 marks]
d. Deduce that the interest rate, r, increases as government expenditure, G*, increases

Answer by ikleyn(52921) (Show Source): You can put this solution on YOUR website!
.

Please LOOK into YOUR POST as it APPEARS at the forum.

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