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    Question

    1.       C = 50 + 0.5 Yd, I = 100 -50i, T=G=100

    where, Yd is disposable income, T and G are taxes and government expenditure respectively and i is the interest rate. What is the IS curve of the same?
    A Y = 200+50i Correct Answer Incorrect Answer
    B i = 4-0.1Y Correct Answer Incorrect Answer
    C Y = 400+100i Correct Answer Incorrect Answer
    D i= 4 - .01Y Correct Answer Incorrect Answer

    Solution

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