2. Write down an expression for the Investment-Savings (IS) Curve. (Hint: First use the AE equation to find an expression for equilibrium Y . Next, remember that the IS equation takes the form of r = ....)

C(Yd) = 58 + 0.6 Yd

I(r) = 52 0.2 r

G = 180

t = 0.4 (represents 40%)