Consider the Following Model of the IS Curve Without an International

question 89

True/False

Consider the following model of the IS curve without an international sector:
Consumption: $C _ { t } = \bar { a } _ { c } \bar { Y } _ { t };$
Investment: $I _ { t } = a _ { i } \bar { Y } _ { t };$
Government expenditure: $G _ { t } = \bar { a } _ { g } \bar { Y } _ { t }$
.
With this formulation, the IS curve is horizontal.

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