When C=200+0.75 (Y-T), I=200-25r, G=100, T=100. Find IS curve function.
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JNU SSS 2020 Question 31: IS-LM model
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IS-LM model has come up 137 times in 7 exams since 2004.
What this question tests
This question is on Deriving the IS curve, part of IS-LM model in Macroeconomics.
How the goods market gives a downward-sloping relation between the interest rate and income.
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