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The formula for the IS curve can be derived from the formula Y= [Co + MPC(Y-T)] +1+G. When the IS curve is derived, T
The formula for the IS curve can be derived from the formula Y= [Co + MPC(Y-T)] +1+G. When the IS curve is derived, T and G are assumed constant and Y varies based on the interest rate r. Assuming. that Co=50B, MPC= 80, T=2008, 1= 1208-10(r), and G=2508, the derived IS curve is 2606 A) B) Y= 1,400B 10r Y=1,300B + 40r Y=1,3008-50r Y = 1,400B + 50r
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Principles of environmental science inquiry and applications
Authors: William P. Cunningham, Mary Ann Cunningham
7th edition
978-0073532516, 73532517, 978-1259656415
