The IS Curve Is Y = 20 - 1

question 71

Multiple Choice

The IS curve is Y = 20 - 1.5r,and the aggregate demand curve is Y = 15.5 - 0.3π.When the interest rate is 7 percent,the inflation rate is ________ percent.

• A)14.6
• B)9.5
• C)3.6
• D)20
• E)none of the above

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Definitions:

Taxable Income

Taxable income is the amount of income that is subject to income tax, after deductions and exemptions.

Percent

A method of representing a number as a part of 100.

Straight Commission

A compensation method where an employee or salesperson is paid solely based on the amount of sales generated.

Annual Quota

An annual quota is a fixed limit on the quantity of something that can be produced, imported, or acquired within a single year.