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EricNguyen

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Dec 13th 2012, 0:06:16

Appreciate the clear-up! Still lost on the math and equations to factor the 23% money supply increase in. I tried 1.75 - 182.439 -M, to reach the original money supply being 180.689. Then I tried factoring a 23% increase to reach 222.24747. But when I tried to plug this into the equation to get the new equilibrium GDP and interest rate, I'm getting r = Y - 222.24747, which makes no sense as interest rate wouldn't have dropped that low for Y =0. Can you show me what I'm doing wrong/what I need to do to be correct?

Edited By: EricNguyen on Dec 13th 2012, 21:18:10
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