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) vertical.
C) less steeply sloped than the "standard" IS curve.
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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