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  1. business
  2. economics
  3. desired consumption is cd = 20 + 0.5y – 0.1

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.

  1. the investment function with respect to its components.

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