Im trying to solve this using Cramer's rule. Having trouble with doing initial rearranging into Ax=b

C=α+βY

I=γ+θr

Y=C+I

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- Apr 9th 2009, 05:15 AMmolimoliCramer's rule
Im trying to solve this using Cramer's rule. Having trouble with doing initial rearranging into Ax=b

C=α+βY

I=γ+θr

Y=C+I - Apr 9th 2009, 05:47 AMaidan
- Apr 9th 2009, 06:04 AMmolimoli
the lower case y is a gamma. and the a an alpha. Sorry i cannot seem to make the equations bigger.

Y C and I are endogenous

r is exogenous

alpha, beta, gamma and theta are known constants