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If C = 1000 + 0.75 x Disposable Income while investment is I = 2000 – 20r. If government expenditures are 0, the tax rate is 1/3, what is the equation of the IS curve? What are the values for r-intercept and the Y intercept?
Business Economics, Economics
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Why do households need to hold a mixture of bonds and money? What determines the proportion of bonds/money that household keeps?
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