Dornbusch Fischer Macroeconomics 6th Edition Solutions May 2026

Y = 100 + 0.8Yd + 0 + 200

Simplifying and solving for Y, we get:

Suppose the investment function is given by I = 200 - 10r, where r is the interest rate. If the interest rate is 5%, what is the level of investment? Dornbusch Fischer Macroeconomics 6th Edition Solutions

Substituting the given values, we get:

I = 200 - 10(0.05) = 200 - 0.5 = 199.5