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Consider an economy described in the diagram below and suppose the IS and the LM relations are: IS:Y = C(Y-Tax, Confidence) + I(Y, Confidence, i
Consider an economy described in the diagram below and suppose the IS and the LM relations are:
IS:Y = C(Y-Tax, Confidence) + I(Y, Confidence, i + Premium) + G
LM:M/P = Y L(i)
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