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      Question

      When C = 200 + 0.75(Y − T), I = 200 − 25r, G = 100,

      T = 100. Find IS curve function.
      A Y = 1700 − 100r Correct Answer Incorrect Answer
      B Y = 1800 − 100r Correct Answer Incorrect Answer
      C Y = 1900 − 100r Correct Answer Incorrect Answer
      D Y = 1700 + 100r Correct Answer Incorrect Answer
      E Y = 1700 - 20r Correct Answer Incorrect Answer

      Solution

      For IS curve, goods market is in equilibrium so equate AD = AS to get the equation. 200 + 0.75(Y-100) +200-25r + 100 = Y Y = 1700 − 100r

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