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Combining the IS and monetary policy rule curves gives us:
Financial Risk
The likelihood of financial setbacks in an investment or business initiative.
Interest Tax Shield
Lowering income taxes through the deduction of debt interest payments from taxable earnings.
Debt
An amount of money that is owed by one party to another, usually as a result of borrowing.
Tax Rate
Tax rate is the percentage at which an individual or corporation is taxed by the government on their income, assets, or transactions.
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