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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