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Consider the following economy: C = 200+0.5(Y - T) C= Consumption, Y = Income, T = Taxes I = 200-2000r I = Investment, r =

Consider the following economy: C = 200+0.5(Y - T) C= Consumption, Y = Income, T = Taxes I = 200-2000r I = Investment, r = real interest rate MD = 300 -1000r MD = Money Demand G = 0, T = 0 G = Government Spending MS = 200, P = 1 MS = Money Supply, P = Price Level

Which of the following options is(are) correct?

a) The slope of the IS curve is 0.2

b) LM curve is vertical

c) The equilibrium income of this economy is 450

d) The equilibrium real interest rate is 0.2

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