Multiple Choice
Consider the following model of the IS curve without an international sector:
Consumption:
;
Investment:
; and
Government expenditure:
)
With this formulation the IS curve is:
A) horizontal.
B) less steeply sloped than the "standard" IS curve.
C) vertical.
D) more steeply sloped than the "standard" IS curve.
E) Not enough information is given.
Correct Answer:

Verified
Correct Answer:
Verified
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