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    Question

    Based on the IS curve and LM curve you have

    derived in Q36 and Q37, what is the equilibrium income?
    A 560.9 Correct Answer Incorrect Answer
    B 660.7 Correct Answer Incorrect Answer
    C 760.9 Correct Answer Incorrect Answer
    D 760.7 Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    By equating the IS and LM equations: 

    Y*=1065/1.4=760.7

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