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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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