Question:
Consider a closed economy with consumption function $ C = 2 + 0.5π$, where π is income. The government expenditure is 3 and investment function is $ I = 4 β 0.5r $ , where r is interest rate. Then, the slope of the IS curve will be
Consider a closed economy with consumption function $ C = 2 + 0.5π$, where π is income. The government expenditure is 3 and investment function is $ I = 4 β 0.5r $ , where r is interest rate. Then, the slope of the IS curve will be
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Updated On: Oct 1, 2024
- 1
- -0.5
- 1.5
- -1
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The Correct Option is D
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The correct answer is (D): -1
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