1. This exercise will ask you to work through the derivation of the IS curve under various different scenarios. (a) Grap

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1. This exercise will ask you to work through the derivation of the IS curve under various different scenarios. (a) Grap

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1 This Exercise Will Ask You To Work Through The Derivation Of The Is Curve Under Various Different Scenarios A Grap 1
1 This Exercise Will Ask You To Work Through The Derivation Of The Is Curve Under Various Different Scenarios A Grap 1 (35.27 KiB) Viewed 30 times
1. This exercise will ask you to work through the derivation of the IS curve under various different scenarios. (a) Graphically derive the IS curve for a generic specification of the con- sumption function and the investment demand function. (b) Suppose that investment demand is relatively more sensitive to the real interest rate than in (a). Relative to (a), how will this impact the shape of the IS curve?
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