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Long question: Consider a. Keynesian model of the economy. The MP curve in {glass: resulting 'om combining the interest-rate rule and the Fisher equatio 171'

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Long question: Consider a. Keynesian model of the economy. The MP curve in {glass: resulting 'om combining the interest-rate rule and the Fisher equatio 171' + X?!" + i 1'TE. Dn the goods market side: though, taxes on the income of sons as a proportion t E {I}E l] of their inoomeE so that the mnsurnption function is C .Moreover1 the government makes transfers to rms through an investment tax e the investment function is given by I = r: :51" + X. This investment tax or exogenous part :1:1 and a part that is automatic, whereby in recessions the tr Therefore: I = :r: til? where 1.!1 2.: D. [a] Derive the new IS relation and plot it in {1", r] spsoe: together with the the equilibrium

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