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The Equilibrium Analysis of a Closed Economy Model with Government and Money Market Sector

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  • Gina Ioan

    (Danubius University of Galati, Romania)

  • Catalin Angelo Ioan

    (Danubius University of Galati, Romania)

Abstract

In this paper, we first study the static equilibrium of a a closed economy model in terms of dependence on national income and interest rate from the main factors namely the marginal propensity to consume, tax rate, investment rate and the rate of currency demand. In the second part, we study the dynamic equilibrium solutions in terms of stability. We thus obtain the variation functions of national income and interest rate variation and their limit values.

Suggested Citation

  • Gina Ioan & Catalin Angelo Ioan, 2011. "The Equilibrium Analysis of a Closed Economy Model with Government and Money Market Sector," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 5(5), pages 126-142, October.
    • Handle: RePEc:dug:actaec:y:2011:i:5:p:126-142
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    1. Catalin Angelo Ioan & Gina Ioan, 2012. "The Equilibrium Analysis of a Closed Economy Model with Government and Money Market Sector - II," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 5(5), pages 177-186, October.
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    1. Catalin Angelo Ioan & Gina Ioan, 2012. "The Equilibrium Analysis of a Closed Economy Model with Government and Money Market Sector - II," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 5(5), pages 177-186, October.

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      Keywords

      equilibrium; demand; income;
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