IS Curve Exogenous Variables and Parameters
Table 2 
-In the text,the equivalence of the goods market equilibrium in the IS model to the equilibrium in which desired investment equals desired saving is demonstrated,assuming that both government purchases and net exports are zero.Demonstrate the equivalence when both G and NX are non-zero.
Definitions:
Annual Rate of Return
The percentage of return on an investment over a one-year period, including interest, dividends, and capital gains.
Net Income
A company's total profit calculated by subtracting total expenses from total revenue.
Product Line
A series of related products offered by a company that serve similar functions or are targeted at a similar customer base.
Fixed Costs
Expenses that do not change with changes in the volume of production or sales, such as rent or salaries.
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