In a two-sector model, assume that the consumption and investment functions are as follows: C = 100

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In a two-sector model, assume that the consumption and investment functions are as follows:

C = 100 + 0.75Y I = 1500 − 10r Find

(a) Th e equation of the IS curve.

(b) Th e equation of the IS curve when the investment function changes to I = 1500 − 5r while the consumption function remains the same.

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Managerial Economics

ISBN: 9788131775622

1st Edition

Authors: Vanita Agarwal

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Question Posted: Nov 07, 2024 04:00 AM

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In a two-sector model, assume that the consumption and investment functions are as follows: C = 100

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Managerial Economics

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