Consider the Following Model of the IS Curve Without an International

question 26

Multiple Choice

Consider the following model of the IS curve without an international sector:
Consumption:
;
Investment:
;
Government expenditure:
)
With this formulation,the IS curve is:

• A)horizontal.
• B)vertical.
• C)less steeply sloped than the "standard" IS curve.
• D)more steeply sloped than the "standard" IS curve.
• E)Not enough information is given.

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