(Continued with question 1 in exercise for chapter 3). Suppose instead of given 2000 there is an investment function which takes the form Above, i is the interest rate. Meanwhile there is a demand function for money Md=1.2Y-20000i Assume that the monetary base is equal to 2000 while the required reserve ratio is 1 ). What is the equilibrium level of output Y and interest rate?
Ch. 20 Processes with Deterministic Trends 1 Traditional Asymptotic Results of OlS Suppose a linear regression model with stochastic regressor given by Y=x!3+e,t=1,2,…,T,;B∈R or in matrix form y=xB+E We are interested in the asymptotic properties such as consistency and limiting