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    Exam 7: Keynesian System III: Policy Effects in the Is-Lm Model
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    If Consumption Is Given by C = 300
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If Consumption Is Given by C = 300

Question 44

Question 44

Multiple Choice

If consumption is given by C = 300 + .6 (Y-T) and I = 300 - 40r,the IS curve is


A) Y = 600 - 2.4T - 40r + G.
B) Y = 600 + .6Y -100r - G
C) Y = 1500 - 1.5T - 100r + 2.5G
D) Y = 1500 + .6T - 100r - G
E) none of the above.

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