In this case, as interest rates fall, planned investment spending and net export do not change, so

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In this case, as interest rates fall, planned investment spending and net export do not change, so equilibrium output remains unchanged. This means that the IS curve is vertical.

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International Economics

ISBN: 978-1429278447

3rd edition

Authors: Robert C. Feenstra, Alan M. Taylor

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Question Posted: Mar 13, 2018 08:47 AM

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In this case, as interest rates fall, planned investment spending and net export do not change, so

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International Economics

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