Show how to derive an IS curve that includes the consumption multiplier. That is, show how to

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Show how to derive an IS curve that includes the consumption multiplier. That is, show how to derive equation (11.16). Draw a graph of the original IS curve and the IS curve that includes the multiplier. Which one is flatter, and why?

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Macroeconomics

ISBN: 978-0393923902

3rd edition

Authors: Charles I. Jones

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Question Posted: Feb 25, 2016 06:32 AM

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Show how to derive an IS curve that includes the consumption multiplier. That is, show how to

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Subtract 1 from both sides and collect all the s minus one into one term A ...View the full answer

Macroeconomics

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